Spec funds have been busy reducing their short positions, with the third largest buy in week on record being reported by the US CFTC. Worsening conditions in Arg continue to promote uncertainties combined with a pickup in US export trade. Despite this the spec funds still hold an overall bearish position when compared to global stocks.
Informa Economics, a private analytics firm, lowered its estimates of Argentina’s 2017/18 corn and soybean crops. The firm estimated Argentina’s 2017/18 corn crop at 37.0 million tonnes, down 5 million tonnes from a prior forecast. It also noted below-normal rainfall Argentina’s crop belt. Informa put 2017/18 Argentine soybean production at 51 million tonnes, down 3.5 million from its previous estimate.