Fundamentally, China is one of the world's largest corn producers, producing roughly 220 million metric tons per year. It's being reported by the official Xinhua News Agency that the communist regime will end the stockpiling of corn and let the market dictate prices. This after about eight years of growing and storing corn to the point where there is a glut.
Fundamentally, with all the talk of trend following funds holding a record net short position in corn, it would seem that the market could be poised to make a push higher. Although for now, the corn market continues to remain range bound.
Wheat finished higher Monday supported by concerns we could see some lost production in the coming days as cold temperatures are set to hit parts of the plains and with a huge amount of the U.S. wheat crop out of dormancy because of early season heat we likely could see a reduction in yield if these temperatures are very widespread.