Corn and Beans End August With a Rally
Corn managed to close out August Friday on a positive note with gains of 6 to 10 cents a bushel. It was likely some short covering going into the long Labor Day Weekend. Many times you do see a market change in direction after a long holiday weekend. Friday morning the USDA announced an export sale of 273,800 MT of corn was sold to an unknown destination for the 18/19 marketing year. Remember the new marketing year begins today. The Commitment of Trader Report showed the funds added 42,133 contracts to their net short positions and are now short 56.957 contracts as of last Tuesday.
Soybeans saw a nice rally Friday too with gains of 11 to 13 1/2 cents a bushel mainly on profit taking. Friday morning the USDA announced a soybean sale of 250,000 MT sold to an unknown destination for the new marketing year. The Commitment of Traders Report showed the funds added 13,593 contracts to their short position. They are short 53,642 contracts as of last Tuesday. The Stats Canada report put their canola production at 19.162 MMT. That was 10.2 percent less than last year and 1.1 MMT below trade estimates. So, is it wishful thinking maybe the lows are in?