MARKET COMMENTARY

Opening calls:

Corn down 2

Beans up 2-3

Friday, the May corn contract closed 2 ½ cents lower settling at $3.86 ¼. The December contract was closed 2 ¾ cents lower closing at $4.10 ¾. For the week, May contract closed 2 ¼ cents lower, and the December contract closed 1 ¾ cent lower. Friday’s CFTC reports showed funds remain bullish adding almost 35,000 long contracts to net at almost 175,000 long positions. Brazil’s 2^nd crop is progressing well, but there are some concerns about dry areas developing. At some point, the cold/wet weather in the Corn Belt should drive support to the corn market. 

The May bean contract closed 6 ½ cents lower Friday, settling at $10.54 ¼ and the November contract was 4 cents lower settling at $10.49 ½. For the week, May contract closed 20 ½ cents higher, and the December contract closed 16 ¼ cents better. Friday’s CFTC report showed that funds are becoming bearish as they were sellers of 5200 contracts and added to their short positions, but funds are long overall though. Support from beans is coming from the meal, 43% of the world’s soymeal originates out of Argentina, and Argentina has begun importing beans from the U.S. to meet their crushing demand. Beans also continue to find additional support from trade negotiations with China.

I hope everyone stayed safe in our latest round of winter weather. Don’t forget any Extended Price Contracts that are due this week need to be sold or need to be rolled; please contact your local GMA to get this done.

Thank you!