Corn is trading higher this morning as December corn finds support at the 5-dollar level. The July contract is on track to end the week with a loss while the loss in December would only be slight at these levels.
July corn struggled more than new crop this week due to poor demand news which included a cancelled Chinese sale and a bad export sales report.
In Brazil, the upcoming corn crop does not seem to have traders concerned as futures on the Bovespa exchange continue to make new lows.
Ukrainian corn plantings so far in 2023 are lagging behind the previous year at just 3.3 million hectares vs 4.2 m the previous year.
Corn is trading slightly higher this morning with July leading the way up after a disappointing close on Friday which led the contract to lose 31-3/4 cents on the week.
There is a bullish argument concerning the limited number of deliveries for the May contract and the fact that it went off the board 80 cents above current July futures.
The US Department of Ag announced on Friday an atypical case of mad cow disease in an older beef cow in South Carolina but the animal did not enter slaughter and no trade impacts are expected.
Friday’s CFTC report showed non-commercials buying back 17,658 contracts and reducing their net short position to 91,985 contracts.
Wheat is lower this morning as a more favorable weather pattern brings relief to areas in Kansas, Oklahoma, and Texas which are dealing with drought.
The HRW wheat crop tour in Kansas has wrapped up and indicated that production will be the lowest in 66 years. Yields are expected to be better than earlier estimates, but large levels of abandonment will cut into production.
Ukraine’s port of Pivdennyi said Russia is sabotaging its operation by not allowing inspections of inbound vessels in violation of the brokered agreement.
Friday’s CFTC report showed non-commercials as buyers of 4,137 contracts of wheat, reducing their net short position to 112,769 contracts.
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