Managed Money Funds Reduce Short Positions
Jun 19, 2017
Good Morning! Paul Georgy with the early morning commentary for June 19, 2017.
Grain markets are mixed with corn and wheat lower as weekend weather is seen as improving conditions. Soybeans and products are higher on improving demand. Stock indices continue to climb while crude oil is mostly steady.
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Weather forecast compared to Friday has a little less heat and a little less rain for the Midwest in the 8 to 14-day period. The extended forecast is a bit warmer but not as hot as Friday.
Crop conditions report this afternoon is expected to show improvements. Trade is expecting corn G/E to improve by 1 to 2%, soybeans could improve 2% to 68% G/E and spring wheat’s G/E is expected to improve 4 to 5% from last week’s 45%.
CFTC Commitments of Traders report showed managed money funds were huge buyers last week. They were net buyers of 120,829 contracts in corn leaving them net short only 17,929 contracts. Managed money funds were net buyers of 23,277 and 15,064 contracts in wheat and soybeans respectively.
AgRural is projecting Brazil safrinha corn harvest is 4.9% complete ahead of the normal 4.6%.
US oil rigs in production increased by 6 to make it the 22nd week in a row of additional rigs going on line.
U.S. Economic markets this week will focus on whether Fed officials in seven different appearances this week…