Gold market futures large speculators increased their positions to nearly 4:1 on the long side by adding 120k new long positions.
Soybeans higher on heavy rains that are stalling planting. We traded above the $9 per bushel level which was a resistance level and now will be a support level. Soybean futures are currently trading at $9.10 per bushel.
Traders are looking forward to next Monday (June 4) corn planting progress numbers. The latest planting progress reading on May 28 for corn was 49%, well below the ten-year-average of 80%.
December corn futures finished yesterday’s session 2-½ cents lower, trading in a range of 6-¼ cents. Funds were estimated sellers of 7,000 contracts on the day.
The corn market is clearly waiting on new news to give it new direction, Friday's USDA report will likely be enough of a catalyst to spark the interest of traders and other market participants.
By mid-March 2018, rhetoric regarding trade relations between the United States and China began to heat up. President Trump started this earlier in the year with an announcement of steel and aluminum tariffs. Later he focused more on China and Chinese officials responded in kind. The heated-up rhetoric seemed to be capable of starting a serious trade war in which each country would boost tariffs that would raise the cost of the other nation’s exported products.
December corn futures finished Friday’s session up 5-½ cents, trading in a 10-¼ cent range, trimming losses for the week to 6-¼ cents. Friday’s Commitment of Traders report showed managed money sold 33,313 futures from June 19 to June 26, expanding their net short position to 90,764.
Export inspections Thursday morning in corn came in at 1,511,746 metric tons, a strong number that offered little support to the market. Attention this week will be on weather and Friday’s USDA report which will give us an updated look at quarterly stocks and planted acres.
CME Group, a diverse derivatives marketplace, today announced the launch of options on its Black Sea Wheat FOB and Black Sea Corn FOB financially settled futures contracts, to begin trading on July 16, 2018, pending all relevant regulatory review periods.