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The U.S. Grains Council market outlook from early June 2016 reported that funds were long roughly 70,000 corn contracts and that momentum was bullish. Argentina's failure to deliver its crop to port boosted U.S. exports, and U.S. weather was suboptimal with below-normal precipitation expected in the Midwest.
Brazilian cash prices were also rising on short supply.
Argentine logistics failures and Brazilian shortages support export demand for U.S. corn, while dry Midwest forecasts add weather premium to prices.
grains.orgJun 2, 2016Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Fund length of about 70k contracts with bullish momentum, Argentine delivery problems boosting US exports, and a dry Midwest outlook created supply and positioning conditions favoring a sharp rally.
