Starting the week, and markets have broadly been in the red with Brent crude sharply lower on increased concerns for lockdowns in China, weighing on all markets. While in the US, and more favourable weather is forecast for large parts of the US corn and soy area, providing planting confidence.

Key reports this week will be the May USDA WASDE, out on the 12th, with a look toward next season.

Last week Managed Money in general recorded a pullback in overall long positions.

Wheat

Managed Money position in wheat reduced the number of long positions held, to the least held since the start of March, while marginally increasing the number of short positions. The USDA crop progress report will be out later today. Spring planting in the US has been delayed, and winter wheat is in poor condition.

Corn

Managed Money continued to hold a very long position in Chicago corn, marginally adding again to the number of long contracts held last week to 361.99K contracts. However, it’s not all bullish sentiment, and the number of short positions held increased to 34.18k, the largest number held since the end of February. Continue to monitor the USDA crop progress report as planting has so far been delayed. Later this week, the USDA will release the May WASDE. Old crop US corn export sales have continued at an unseasonably quick pace.

Soy

Managed Money positions in soy started to scale back slightly, with the number of long positions trimmed to 160.05k contracts, down from 172.36k the week before, the least held since the end of January. Similarity to corn, Managed Money remain in a large net long position, but the number of short positions increased to 12.49k, the largest number held since the start of February.