Headlines:

  • corn, wheat prices soar as funds unwind spreads
    If cotton’s gains were particularly marked on Monday, it was not the only agricultural commodity to gain. Chicago’s big three closed higher too, with support from some the same weather worries that lifted cotton – i.e. US rains, which are slowing soybean and corn harvesting, and winter wheat sowings. “The slowdown in harvest pressure late in the weekend has been supportive for corn and prompted some spread unwinding,” said Darrell Holaday at Country Futures, referring to the reversal of long soy-short grain spreads.  “The major price action is being driven by fund trading in that they have been long the soybean complex and short the corn and the wheat.”
  • Fresh US weather fears send cotton futures soaring
    Cotton futures soared the most since the hurricane rally on fresh US weather fears, at a time of upbeat hopes for the country’s exports of the fiber. Cotton futures for December stood up 4.1% at 69.59 cents a pound in late deals in New York, the highest since the limit-up performance prompted early last month by fears over Hurricane Irma. The gains, which took futures above their 100-day moving average for the first time since the Irma rally, were attributed in part to rains over the weekend which threatened further damage to crop production and quality. “More rain will risk greying up the fiber,” so lowering its desirability, said Keith Brown at Georgia-based Keith Brown, adding that the squeeze on high-grade supplies was already seeing top-quality cotton earn a premium of some 4 cents a pound over futures. Commodity Weather Group said that up to 3.5 inches of rain fell in the southeast US Plains on Saturday.

 

Summary:

Producers have been making more headway with bringing in this year’s Soybean crop than that of Corn. As of Sunday, 38% of the US Corn crop had been harvested is well below the 59% five-year average for this time of the year according to the USDA Crop Progress Report. The US Soybean crop managed to reach 70% harvested versus a 73% five-year average. Corn and Soybean futures finished higher as investors provided the support by way of short covering. Wheat futures were also sharply higher almost reversing all of the losses from last week in just one day. Elsewhere, Crude oil market were up slightly as was the US Dollar is higher.

Better than expected export inspections number and strength from the Corn and Wheat markets cleared the way for Beans to finish 1 to 1.25 cents higher. Follow through from overnight strength carried Corn higher for the entire trading day posting gains in the range of 6.25 to 6.50 cents. Wheat rounded out the day with the largest gains of the day. The nearby contract posted a 10.25 cent advance.