Wheat Prices Drop to One Month Low on Large US Plantings
Corn and Soybeans Trade Higher in the Overnight Session
In the overnight session corn and soybeans are trading higher as wheat stumbles. March corn is up 2 cents, March soybeans are up 5 ¾ cents, March Chicago wheat is down 3 ¼ cents and Kansas City wheat is down 4 ¾ cents this morning.
Kansas City wheat broke through the 50 and 20 day moving average with strong volume on Friday after the Seedings report showed larger than expected wheat acres planted throughout the U.S. The USDA announced that 32.608 million acres were planted to wheat which was above the analyst expectations which ranged from 31.1 to 32 million acres.
Weekend precipitation in Argentina was good, but coverage and amounts were variable across the major crop growing regions. Between 1 to 2 inches of precipitation was observed over the weekend throughout Cordoba and Santiago del Estero, but other areas in Western and central Buenos Aires, La Pampa and southern Cordoba saw less than .6 inches. Net drying occured in the areas that received less moisture as temperatures soared in the 90’s and 100’s on Friday. By the weekend, temperatures moderated with highs in the 70’s and 80’s. Although rains were received throughout Argentina there are still signs of crop stress and a reduction in yield potential. More widespread precipitation is needed to improve the yield outlook.
Last week’s commitment of traders report showed that managed money increased their net short position in corn futures and options by 23,940 contracts to 222,516. Money managers also increased their net short soybean position by 7,329 in futures and options to 92,835 contracts. Managed money also increased their CBOT wheat short position in futures and options by 813 contracts to 128,990. KCBT wheat net short position declined by 11,360 contracts to 17,600.
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