Morning Comments March 27, 2017
Monday, March 27, 2017, 8:03 AM
Submitted by: Landus Cooperative
Corn: steady to 1 cent higher
Soybeans: 2 to 3 cents lower
Friday, May corn closed ½ cent lower settling at $3.56 ¼. December futures were ½ cent lower closing at $3.79 ½. For the week, the May contract lost 11 ¼ cents and December lost 10 ¼ cents. The weekly COT report showed funds increased their net short position to -82,000 contracts as of Tuesday. It is likely the funds will take a “wait and see” approach ahead of the reports being released this Friday. Most trade sessions preceding big reports mostly comprise of shoring up positions (read: choppy trade). It is possible some buying could be generated with a higher close today, as momentum indications would be turned back to higher. Planting delays for Southern production are expected into early April, but the moisture is good for easing drought concerns in the long run.
The May bean contract closed 15 ¼ cents lower settling at $9.75 ¾ and the November contract closed 14 ¼ cents lower settling at $9.77 on Friday. The May contract lost 24 ¼ cents and the November contract lost 16 ½ cents for the week. Funds continued to sell last week with the trader report showing them over 65,000 contracts net long for beans, 59,000 contracts net long for meal, and -25,000 contracts short for oil as of Tuesday. It’s estimated the net long position was decreased later in the week and they ended up around 50,000 contracts net long. Beans will continue to see downward pressure as a result of weak technicals, but the pressure is expected to be short-lived due to the market being oversold. Market movement will depend on how much bean acreage is expanded in the USDA report on Friday.
March 29th, Jake Moline, of FC Stone, will be at the Lakeview Community Center in Clear Lake. This would be a great opportunity to hear what Jake has to say about the commodity markets and predictions about the report on the 31st. Registration at 10 a.m., meeting at 10:30 a.m., lunch to follow. Call 1-877-778-2226 to register or contact your local Landus Cooperative location.