Markets are in the green to start off the week. Managed money trimmed back corn long positions slightly to 345,000 contracts last week, ahead of the USDA supply/demand report tomorrow. Managed money soybean long position was nearly unchanged at 156,000 contracts. Trade expectations for the report tomorrow are for exports to be increased and ending stocks to be lowered, both for corn and beans. The USDA will also be releasing new baseline projections in their annual outlook meeting later this month.
On the world stage, Brazilian soybeans are only 4% harvested, compared to the normal pace of 20%. Russia will be implementing an export tax on wheat starting later this month. In general, many areas in the world are concerned about food supply and commodity inflation amid a post-COVID economic recovery.
US equities and treasuries are also both higher to start the week, due to the passing of the recent stimulus package.
Bitterly cold weather will hold grip on much of the country this week, which could hamper logistics.
Corn: up 2-4c
Beans: up 5-7c