- Lower volumes and mixed trade have been the hallmark of Chicago markets today as “technical healing” is the order of the day following sharp declines this week. Fund managers are cautious over new positions until the next ten days weather can be better determined. Many growers are reporting disappointing rainfall totals and drying soil moisture profiles. An estimated 60 million acres of US corn/soybean area is reported to be short or very short of moisture, which is the largest area since the 2012 drought. Some assistance is coming from the cooler temperatures.
- What is important to note is that this week’s rain will be extremely unlikely to allow the US corn or soybean crop condition ratings to rise in any significant way, if at all. Indeed, we would anticipate Monday’s ratings to hold steady at best and possibly decline by 1%.
- The current weather forecast is cool but has not enough rain to see soil moisture levels rise in any meaningful way. The drought looks likely to grow, particularly in Canada further stressing, and reducing, both spring wheat and canola (rapeseed) crops. We would offer extreme caution to those of a bearish persuasion on corn, soybeans or wheat prices.
- To download our weekly update as a PDF file please click on the link below:
Weekend summary 4 August 2017
- Our weekly fund position charts can be downloaded by clicking on the link below:
Fund positions disaggregated data
