|Market bounce on patchy rain and higher temperatures|
Following the US Memorial Day the USDA weekly crop progress report will be released later today, and we’ll cover the crop conditions and progress tomorrow.
Markets have gained support at the start of the week as forecasts turn dry for the US with only patchy rainfall in the next seven days. Key spring wheat states like North Dakota remain a concern as soil moisture remains lacking, significant rainfall will also soon be needed again in the US corn belt as the summer approaches. Read our analysis and outlook in the Weekly Outlook
Managed money reduced the number of long positions held in Chicago corn again last week, at 307K contracts, this is the lowest number held since October. A long way to go until harvest, but a sign of increasing confidence? Managed money funds also reduced the number of long contracts held in Chicago wheat to the lowest number of contracts since the end of March, alongside a reduced exposure to soybean markets.
What does it mean?
The position of funds in agricultural commodities can be a key indicator of market direction, and with large positions held in key contracts, can be influential in market movement.