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.
Soybeans have traded as much as 58 cents off of Friday’s lows in the early morning session. There has been renewed hope on the trade side of things, not just that China wouldn’t disappear but perhaps even start buying more agricultural products from the United States.
Weather continues to be a headline story, mostly due to the fact that there is not much else to report on at this point. There are chances for rain in Argentina later in the week, but we are in the camp that thinks it may be too little too late.
Crude oil prices dipped as trade war fears went away after a private report that appears to indicate that oil supplies may see a big increase this week. Genscape, the widely followed energy market data and intelligence company, reported that oil supply in Cushing, Okla., was up 2.18 million barrels last week. The increase and the fact that some of the Geo-Political concerns did not actually blow up into a supply disruption over the weekend led to a correction in the price of crude.