Managed Money Funds Reduce Short Positions

Good Morning!Paul Georgy with the early morning commentary forJune 19, 2017.

Grain marketsare mixed with corn and wheat lower as weekend weather is seen as improving conditions. Soybeans and products are higher on improving demand. Stock indices continue to climb while crude oil is mostly steady.

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Weather forecast compared to Fridayhas a little less heat and a little less rain for the Midwest in the 8 to 14-day period. The extended forecast is a bit warmer but not as hot as Friday.

Crop conditionsreport this afternoon is expected to show improvements. Trade is expecting corn G/E to improve by 1 to 2%, soybeans could improve 2% to 68% G/E and spring wheat’s G/E is expected to improve 4 to 5% from last week’s 45%.

CFTC Commitments of Tradersreport showed managed money funds were huge buyers last week. They were net buyers of 120,829 contracts in corn leaving them net short only 17,929 contracts. Managed money funds were net buyers of 23,277 and 15,064 contracts in wheat and soybeans respectively.

AgRuralis projecting Brazil safrinha corn harvest is 4.9% complete ahead of the normal 4.6%.

US oil rigsin production increased by 6 to make it the 22ndweek in a row of additional rigs going on line.

U.S. Economicmarkets this week will focus on whether Fed officials in seven different appearances this week suggest they might be turning a bit more dovish in the wake of softer inflation and economic data and new developments on the Russia investigation.

Fed Cattle Exchangeauction will be back in action on Wednesday. Trade will be looking for guidance as product values are expected to be under pressure this week. Packer margins are still advantageous to produce as much beef as possible.

Managed money fundsmade minimal position adjustments last week in cattle and hogs by net buying 2,764 and 1,177 contracts.

August live cattlefutures closed below the 50-day moving average on Friday and the first time since March 7. Chart support could be found at the May low of 166.77 with resistance at 120.00.

August lean hogsnow have resistance at 80.00 and support at 77.25.

Dressed beefvalues were mixed with choice up .10 and select down .73. The CME Feeder Index is 151.07. Pork cutout value is up .73.

Markets At-A-Glance – 5:00 AM

  • Jul Corn -4 3/4
  • Jul Beans +3 1/2
  • Jul Wheat -1
  • Jul Soymeal +1.50
  • Jul Soy oil +.08
  • Sep Dlr +.02
  • Sep S&P +6.50
  • Jul Crude +.14
  • Aug Gold-4.00

Technical Chart of the Day

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