Corn and Beans Need New News
The corn market struggled late last week posting losses of about 4 cents on Friday. There is an old saying in the grain markets that " the bull needs to be fed every day." So, the drought in Argentina may be old news and in the market. However, we did get some bullish news Thursday. The weekly export sales for corn of over 2 MMT was one of the largest totals in decades and maybe a record. The Commitment of Traders Report showed the funds are net long 233,063 contracts as of last Tuesday.
Beans did see some strength late in the week. Like corn there is a lot of debate about just how much damage was done by the drought. I suspect traders are waiting to get into harvest to see what the yields actually are before building any more weather premium into prices. The Commitment of Traders Report showed the funds are net long 208,200 contracts.