CORN
- Corn is trading lower this morning and has been trending lower since the beginning of October below the 100-day moving average. Corn is likely still under some pressure from Friday’s report which showed a larger than expected increase in the average yield.
- Friday’s report saw the corn yield increased to 183.8 bpa but the ending stocks falling a hair below 2 billion bushels thanks to an increase in exports. World ending stocks fell slightly, and South American production was left unchanged.
- Friday’s CFTC report showed funds as buyers of corn by 43,970 contracts as of October 8 which reduced their net short position to just 23,729 contracts. Since then, funds are estimated to have sold an additional 14,000 contracts.
SOYBEANS
- Soybeans are trading lower this morning with the November contract hovering right at the $10 mark. Although soybean yield was lowered in the WASDE report, soybeans had a bearish reaction. Both soybean meal and oil are trading lower this morning.
- The average soybean yield was lowered slightly to 53.1 bpa from 53.2 last month but the carryout was left unchanged at 550 mb. World ending stocks were increased slightly but South American production estimates were left unchanged.
- Friday’s CFTC report showed funds as buyers of 13,088 contracts of soybeans which left them net short 21,798 contracts. Since then, funds are estimated to have sold 11,000 additional contracts.
WHEAT
- All three wheat classes are trading slightly lower this morning in follow through trade from Friday’s report which saw wheat ending stocks not falling as much as trade had assumed. Some rainfall in the 7-day forecast for Kansas and Oklahoma may be adding pressure as well.
- In Russia, SovEcon lowered its estimate for Russian wheat production to 81.5 mmt from a previous estimate of 82.9 mmt. The declines are reportedly due to poor yields in multiple Siberian regions.
- Friday’s CFTC report showed funds as sellers of 6,496 contracts of Chicago wheat which increased their net short position to 29,449 contracts. In KC wheat, they bought back 9,386 contracts which lowered their net short position to just 5,884 contracts.