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Grain futures rose sharply overnight, with corn reaching 12-month highs and soybeans and wheat at multi-month highs. Analysts cited dire balance sheets and talk of demand rationing near 1 billion bushels.
Producer selling had slowed, and speculators still held large net short positions.
Demand rationing estimates point to tight supplies, which supports higher prices. Large net short positions could add to the upward move if weather or data turn bullish.
dtnpf.comTregg Cronin DTN Contributing AnalystMay 30, 2019Not enough comparable past events yet for a historical read.
Not enough comparable past events yet for a historical read.
Not 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.
It describes an overnight surge in grains with wheat at multi-month highs and large speculative short positions, which implies short-covering, but it is dated May 30, after the move, so it is likely a continuation of the same rally.
