- Post report day leaves us looking at higher soybean and corn prices whilst wheat prices decline. We have seen season highs in both soybeans and corn. Fund activity has been evident as we enter the new month and quarter and yesterday’s report offered little to discourage (or encourage for that matter) investment.
- Any soybean price rally is seen as an opportunity by Chinese importers and Argentine soybean meal exporters to sell back or add to sales. Argie values are weakening as supplies grow and pressure continues to mount on Chinese crushers who face ongoing negative margins.
- There is now a window of opportunity, weather-wise, for fieldwork and planting in the US Delta and south Midwest, which will persist for as much as two weeks, permitting early planting of corn although the forecasts are volatile, to say the least, as a consequence of the split and fast moving jet stream.
- The big question remains, “Will funds continue to add to already large positions?” This is particularly pertinent given improving spring weather.