Friday was another slower/lower day that left both old and new crop futures slightly weaker at the close. The soy product markets were mixed, with soyoil marking strong gains while meal prices slumped lower. Commodity fund traders were estimated sellers of 1,500 soybean and 1,000 soymeal contracts, while buying 2,500 contract of soyoil.
Better weather through the week for the E Midwest A we expect that planting progress through Sunday will have reached 23-28% complete. Much of the Cornbelt receive 1-3” of rain in the last week.
The weekly Commitment of Traders report showed that as of Tuesday, soybean speculators had covered a small portion of their net short soybean position and are now short 38,353 futures contracts (+13,130), and net long 4,018 contracts (+202) through options. Hedgers were net sellers of 8,802 contracts, but still hold a small net long position. With crop uncertainty and weak prices, world farmers remain slow sellers while funds are still holding a sizable short position. We target rallies back to $10+ for our next sales recommendation. July soybeans appear caught in a range of $9.50-10.00 unless Midwest weather turns adverse.