Soybeans got hit hard yesterday, trading to their lowest price since May. The spread of coronavirus has given the funds ammunition to add to their growing net short position.
The U.S. Dollar continues to be trading near multi-month highs which is throwing a wet blanket on grain markets. The risk-off trade created by the spread of coronavirus has and will continue to affect near term money flow in commodities, including corn.
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The USDA’s Ag Forum had corn acres at 94 million acres, far from friendly but short of apocalyptic. The USDA’s Prospective Plantings report will be out next month and hold a little more weight.
Soybeans have seen a choppy overnight session, trading both sides of unchanged. Phase-1 is officially underway, a silver lining. The bulls will want to see a weekly export business increase in the coming weeks as verification that Phase-1 holds more hope and not just hot air.
March corn futures slipped lower yesterday but remain trapped within the range amid the time of year that offers a lack of news to break the market out or down.
March corn futures managed to rally yesterday as shorts started to cover positions on the inability to break lower on a bearish USDA report on Tuesday.
March soybean futures caught a bid yesterday morning on the back of rumors that China was set to purchase 2-3 cargoes of new crop beans.
Corn futures managed to rally on Friday, putting prices in positive territory for the week. Friday’s Commitment of Traders report showed funds sold 26,655 contracts through February 4th, extending their net short position to 52,045.
Soybean prices rallied yesterday, much of which was on the back of technical relief. Outside markets have stabilized as concerns over coronavirus ease, spilling into support for commodities.