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China’s Purchases of U.S. Soybeans Roll On

Spring wheat prices have rallied 70¢ off their recent low.

Spring wheat futures have rallied nearly 70¢ off the recent low. Prices are quickly approaching the summer highs.

Poor harvest conditions in North Dakota and Canada have given the bulls all they needed to spark a short covering rally.

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The funds held over 23,000 short positions as of the most recent Commitments of Traders report.

With the spring wheat being the thinnest traded grain contract, a short covering rally has the potential to really push prices higher in a quick fashion.

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Corn and soybean prices have rebounded off the September lows as well.

Soybeans have benefited from the recent export sales to China while corn is moving higher as early yield reports are coming in less than expected.

The problem with the soybean rally is that traders want to see a long-term solution to the trade war. The recent sales are a good start, but in order for traders to swap their short position to a long position, we will need to see a signed trade deal.

Here’s this week’s Successful Marketing Newsletter.

South American weather is not off to the start they were hoping for. Many areas that have been dry will continue to stay dry. The two-week forecast does not show any major reprieve to the current dry pattern. This is the time of year when a daily update to the forecasts can swing grain prices. Especially if the models start turning wet. Read the full article to see what else I am watching.

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