Corn futures closed into new contract lows again today as the funds continue to build on their record net short position. It was estimated this morning that the corn funds were net short roughly 345,000 contacts. May corn has lost near 12 cents just this week and 33 cents since March 25th. The wheat market continues to act as an anchor to the corn market with May wheat down another 6 cents today. Export demand concerns and better rain forecasts for the EU weighed on wheat again today. The ethanol report showed that 103.8 Mln. bu. of corn was used for ethanol last week. This is the highest weekly grind figures since the week of Dec. 21st. Ethanol stocks did increase slightly this week to 22.77 Mln. barrels, but have recently been in decline mode since the record of 24.448 Mln. barrels on March 22nd. The corn trade continues to mostly disregard the weather forecast. The extended forecast is wetter for the 6 to 14-day period with multiple inches of rain predicted in parts of the Midwest over the next 10 days. Snow could be seen in the northern plains this weekend. Some progress, however, is being seen in the west while the eastern corn belt mainly sits. A higher U.S. dollar index was considered negative to grains as well. Export sales will be out tomorrow.
Soybeans closed nearly 7 cents lower today and have now lost 25 cents for the week. Concerns about export demand amid increased competition from South America weigh on futures. It seems the market may have finally woken up to the fact that the U.S. is currently projecting a record carry out. The late season improved weather forecast in South America has stabilized and/or increased production estimates in Brazil and Argentina, which further hampers the export picture for the U.S. China and the U.S. are set to meet face to face next week in China. The two countries will then head back to the U.S. the week following. The comments surrounding the next rounds of meetings continue to be optimistic that a deal may be announced this summer. The Stats Canada report showed canola acres at 21.3 Mln acres, down from 22.8 Mln. last year. Bean acres are expected to fall to 5.6 Mln. from 6.3 Mln. last year. Spring wheat was forecast at 19.4 Mln. acres, up from 17.3 last year. Export sales will be out tomorrow.
New trading limits as of May 1st.: YC 25 cents (unchanged), SB 65 cents (+5 cents), Wht 35 cents (unchanged)