With a USDA WASDE report due out tonight we saw funds try and square up a little of their huge net long bet in Chicago soybean futures. Volume was up in the bean pit with roughly 333,194 (1.2mt) contract changing hands in the session. Outside markets, the stronger US dollar and politics in Brazil also worked against a higher US soybean price.

The punters were pegging corn sowing at 62% in the US. The crop progress report came out after the close and revealed corn progress at 64% sown against the 5 year average of 50%. Rain is expected to delay sowing in some areas this week but to date rainfall has had little impact on sowing progress as a whole.
Winter wheat crop condition was also increased 1% in the Good / Excellent rating to 62% G/E. At this time last year the winter wheat crop in the US was only rated 44% G/E. Kansas is 73% in head versus the average of 46% for this time of year.

If US corn stocks come out as high as the punters expect, that’s a 30 year high of 55.6mt, we may see further selling in the corn pit. This may not bode well for sorghum in the short term. Further out the dollar and a US summer should present opportunities into the next financial year as punters try and kill the corn crop a couple of times.