Funds Appear to Cover Short Positions Ahead of USDA Report
Corn and wheat markets up sharply on Monday, presumably due to funds covering short positions ahead of the USDA Report. Here’s Virginia McGathey with more details.
McGathey… “Corn rebounded very well today - really strong. It looks like a lot of that is short covering ahead of this report. It was a very big recovery. The market pretty much went straight up, up almost nine cents. And still the funds are still holding a record short position. So if there's a scramble to cover the market that really take off here. But, all the other fundamental news about the grains and corn especially, is relatively bearish. The weather looks good, I know that we're talking about hot weather coming up, but there's still plenty of moisture. So from that standpoint, I think it's going to be really difficult to get this market moving in any kind of way,.But you never know, after a big report coming up tomorrow.”
July Corn closed up $0.09 ¼ to $3.26 ¼.
Chicago July Wheat futures yesterday rallied $0.11 ½ presumably for some of the same reasons driving the corn rally. That market now back up to $4.85 ½.
Live Cattle futures still keeping pretty close to home up $0.45 on the August board to $96.47 ½. Feeder Cattle for August up $0.90 to $133.50.
Class III milk in the green again yesterday up $0.56 to $22.20.