Corn Falls with Oil, Soybeans Bounce: Cattle Fade COF Report

Corn and wheat futures fell on Monday in tandem with a correction in crude oil and a de-escalation of the war in Iran.

Brian Grete with CommStock Investments says early in the morning President Trump posted that the U.S. had postponed strikes on Iran’s power and energy infrastructure for five days which tanked the energy market and turned the stock market higher.

“What we saw is that when the crude oil market faded, those two markets went along with it and probably going to be the case near term, at least. I think that there’s so much geopolitical stuff going on right now and so much that could really move markets from that perspective that we are going to see crude oil be the leader and at least on a price directional standpoint,” he says.

Funds Keep Adding to Long in Corn

The funds have continued to add to their long position in the corn market and are over 220,000 contracts long as of last Tuesday.

However, Grete says whether or not they add to that length is totally dependent on the direction of crude oil. “Well, in all likelihood, no, just because you’ll see money flow out of the long side of the corn market. But, you know, if crude oil does reverse and is at or above $100 that is something that they are willing to trade, then corn, I think, does have more room to the upside.”

USDA Reports

The corn market is also gearing up for key USDA reports on March 31 and the new RFS blending mandates.