Gary's Blog  02/22/24 1:45:49 PM

It’s more of the same on the CBOT as traders continue to push the board lower.  New lows were seen in both corn and beans.   Funds are really putting the squeeze on as we near FND for March futures.  Even technical bulls are waiting for key reversal in the summer row crops before they get excited.  Remember bottoms are made when it’s the most bearish. (doom and gloom) 

Selling returned to the CBOT in a big way as corn and beans both saw big declines.  The one-day rally didn’t last long as traders were quick to defend short positions and push the corn market to new lows.  March futures are 11 cents away from having a “3” handle which hasn’t been seen in years.  First Notice Day is rapidly approaching for those with March positions on.  HTA’s and basis contracts will need to be priced/rolled by Feb 28th.  March option positions will expire Friday Feb 23rd.   Make no mistake this is a bear controlled marketplace until something changes the status quo. 

Grains started off the holiday week in the green with wheat leading the way.  It was nice to see some buying unfold in the summer row crops as corn finished 2 cents higher while beans closed 6 cents better.  Friday’s commitment of trader’s report showed Funds net short 300k+contracts corn and 120k+contracts of beans.  These are significant and greater than the covid “2020” timeframe.  Bearish is still the main theme of the CBOT until Funds have a reason to cover short positions.  We can’t go down everyday and look for a more sideways pattern into the March acreage report. 

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