Grains were mixed with corn and wheat higher in overnight trade, while soybeans were slightly weaker. Crude oil was off sharply with equity futures also sinking in overnight trade. The US dollar was higher trying to recover from last week’s sharp sell-off.
Corn found strength going into the new week after Friday’s CFTC report showed funds added to their short position, creating a record large position of 265,394 contracts in managed money. In wheat, they bought back 15,000 contracts on the week, but are still just off last week’s record large short position.
Over the weekend, hundreds of thousands of Brazilians flooded the streets on Sunday in the biggest ever protests calling for President Dilma Rousseff's removal on corruption ties, reflecting rising popular anger that could encourage Congress to impeach the leftist leader. The Brazilian Real and stock markets there have climbed on hopes a new regime would be instituted.
In wheat, the weather in the Plains is expected to get cold and potentially hit a hard freeze as far south as NW TX, the OK Panhandle and N Central KS across portions next weekend. By early next week, more cold and snow is expected in Westerns KS/OK & TX. Precipitation over the weekend continued to be heavy in the Delta South, while the Eastern Plains and Central Texas got some welcomed rain. The heart of the HRW belt however, saw little if any precipitation.
Oil prices were under pressure to start the week. Iran indicated over the weekend that it wouldn't be interested in attending production freeze talks until it has raised output to over four million barrels per day.
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