Fundamentally, there has been little to feed the bulls in recent weeks. Prospective acres were in line with expectations and the monthly supply and demand report confirmed ample stocks of both corn and soybeans. Only two things are giving anyone in production agriculture any hope: weather and funds. After the bearish government reports of late, funds have sold futures, increasing their net short position. The hope is at some point, funds will get nervous and we will see a mild short-covering rally. Weather is a perennial source of simultaneous hope and despair this time of year. Here in southern Minnesota we have had plenty of water, slowing our progress while the wheels are turning in other parts of the country. In very basic terms, the more wide spread the planting delays are, the more optimistic the corn market should be. However, this week proved that theory inaccurate as weather forecasts still point to cool and wet which should lead to a lower bean bias. This wasn’t the case as beans actually performed better than corn on the week.
CHS – Rochester Grain Team
Kasson: 507-634-7545 ext 7
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