Grain Markets Show Life Last Week
It was an encouraging week for corn prices last week even though the gains were not large. Corn gained about 9 cents last week. However, more important is the technical formations on the charts. New crop corn posted a double bottom on the charts and closed the week above the 20 day moving average. The Commitment of Traders Report showed the funds record short. One report I read said the funds were short about 280,000 contracts while another said 257,965 contracts short. Either way it is a record. While you would think that might bring a short covering rally but not yet. As I write this corn is down a fraction!
It was about the same story in soybeans as new crop November gained about 10 cents last week. The Commitment of Traders Report showed the funds are short a little over 90,000 contracts. That is not a record short position but close to a record. Beans saw really good export sales last week with a big portion going to China, even with the trade war! The NOPA Crush Report was a record for February at 154.5 million bushel of beans crushed. However, it was called bearish because it was below "trade estimates." This was the sixteenth month in a row we set a monthly crush record! Right now beans are down a little over 3 cents.