AM Comments 9/16/15
Wednesday, September 16, 2015, 8:09 AM
Submitted by: Eric Kist
After 6 consecutive days of gains in the corn market (making 1-month highs in the process), corn pulled back slightly yesterday and dropped 3 cents off nearby December futures. Beans saw positive action, on the other hand, and are currently trading at 3-week highs. Follow-through action in a quiet overnight market have both grains mostly steady from those levels this morning, as corn is down a penny, and beans are ¼ cent higher heading into today’s trading session.
During these recent rallies, funds have chiseled away at their short positions, working their bean position to a small net short, and actually flipping their net short position in corn to a decently-sized net long position in corn. As a reference point, harvest bids for corn are actually $0.50 - $0.60 cents higher this year than at this time last year, while harvest soybean bids are currently $1.00 lower this year compared to the same time last year.
FSA acreage data was supposed to be released this morning, but apparently the government is having a rough morning – rather than updating data for this year, they incorrectly submitted 2014’s numbers. Corrected data for this year will be released “soon.”
Corn: 1-2 lower
Have a great day!