Market News- POET: Portland 07/07/20 8:29:44 AM
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|Weekly POET Grain Report|
July 7, 2020
- The USDA reported a slew of flash export sales yesterday morning, including: 264k MT of soybeans to China for old crop, 204k MT of corn to China for new crop, and 182k MT of corn to Mexico (half for 2020/21 and 2021/22). This would be the second corn sale to China in the past couple days, so certainly a positive sign for Phase 1 requirements.
- The COT report released yesterday showed that managed money covered 75k contracts of their corn short, which was their single largest week of short covering since 107k contracts on 6/4/19. The fund short stands at -201k contracts as of last Tuesday, so the action late last week tells us that they likely trimmed their short significantly since the CFTC cutoff.
- NASS reported corn at 71% G/E yesterday which was down 2% vs the prior week. The states that saw the biggest declines were MI and OH at -10%, IL at -6%, and KY at -4%. Soybeans were also reported 71% G/E which was unchanged WoW.
- The overnight GFS model run went wetter vs yesterday which if correct, would provide coverage of 1-2 inches of rainfall for the entire cornbelt in the second week of the forecast (exceptions being southern and western MO). The Euro also went wetter during that timeframe as well, although amounts are substantially less with 1/4 - 3/4 of an inch seen across the cornbelt.