MarketEdge PM Comments
May 09, 2023
(Cody Forde)
Corn and soybean both head lower after the planting progress report. Corn planting pace is seen as 49% and soybeans at 35% planted which is well ahead of the 5-year average. China canceled 272,000 MT of export sales for this current marketing year. That added to the pressure right out of the gate this morning. Last trade for December corn was 5.19^0 down 10^6. Last trade for November soybeans was 12.53^4 down 19^0. We will get an updated WASDE report on May 12 which will have very little changes. We will get a look at new crop corn and soybean carry outs which will help set the tone for the upcoming report.
What does the market look like going forward? I think we will get some shallow rallies into the summer unless we have some major problem. I am going to watch for selling opportunities into summer. My personal thought is we will get a move higher as fund managers have to cover due to some unforeseen issue. Managed money was a seller across the board in all ag markets today. They are estimated to be short about 125,000 contract of corn and still long about 56,000 contracts of soybeans.
Corn and soybean both head lower after the planting progress report. Corn planting pace is seen as 49% and soybeans at 35% planted which is well ahead of the 5-year average. China canceled 272,000 MT of export sales for this current marketing year. That added to the pressure right out of the gate this morning. Last trade for December corn was 5.19^0 down 10^6. Last trade for November soybeans was 12.53^4 down 19^0. We will get an updated WASDE report on May 12 which will have very little changes. We will get a look at new crop corn and soybean carry outs which will help set the tone for the upcoming report.
What does the market look like going forward? I think we will get some shallow rallies into the summer unless we have some major problem. I am going to watch for selling opportunities into summer. My personal thought is we will get a move higher as fund managers have to cover due to some unforeseen issue. Managed money was a seller across the board in all ag markets today. They are estimated to be short about 125,000 contract of corn and still long about 56,000 contracts of soybeans.