Following a more than 60 cent break from the early week highs, soybeans caught support overnight and then extended gains through the day. At the close, soybeans were up 12-15 cents with most new crop contracts back over $10. Commodity fund traders were estimated buyers of 9,000 soybean, 4,000 soymeal, and 3,000 soyoil contracts.
The Commitment of Traders report reflected a significant transfer of ownership in trading through Tuesday. Funds were buyers of 89,264 contracts on short covering and were net long 19,048 contracts, while hedgers were net sellers of 77,776 contracts and back to net short 50,671 contracts.
Much of the Midwest saw 1-2” of rain over the last week, though the Plains drought appears to be spreading east. The NW quarter of IA, and SW corner of MN registered less than ½”. Contrastingly, much of IN and OH had 3-4” and producers have complained about too much rains and yellowish beans. National crop ratings have trended lower in the last 3 weeks, and we look for Monday’s Crop Condition report to show GD/EX ratings unchanged to 1% lower at 61-62% GD/EX.
It was an emmotional week at the CBOT, yet yield prospects for the 2017 crop are still uncertain. We await rallies for more sales.
