Good weather priced in?
Corn and soybeans gained 11.5 cents and 17.25 cents last week in July and this was all led by wheat which gained 26.5 cents. This rally was sparked by the “drone strike” Kremlin early Wednesday morning. Whoever is responsible as no one has claimed responsibility for the attack, it did stop the deluge of managed money selling in the commodities. On the last COT report, funds had sold 103k corn contracts to take their net short to 118K contracts. They sold 30K soybeans and 13k Chicago Wheat. This took multiple futures contracts into oversold conditions and the bullish event is Russia bounced them out of it. The Black Sea corridor extension negotiation is to begin this week with the current deal to expire on the 18th. We will see some major planting progress this afternoon with the open window for planting we had last week. Hearing many in the heart of the corn belt had finished or were finishing up last week. Some dry areas received rain over the weekend, and some more is forecasted for this week. Is the grain corridor bullishness overriding bearish production news, or is WASDE at the end of the week have the markets trying to price in some risk before we see the new crop balance sheet? We will dive into the WASDE later in the week. For today, we will watch 5.88 & 14.30 for support and 6.02 & 14.52 for resistance. NFC Grain Comments Options -5.8.23 (1)