Grain Prices Dip Ahead of Week’s Trade as Investors Trim Net-long Positions

Rain is falling and easing drought concerns in key South American crop regions, and export sales reports hit a few marketing-year lows, both major drivers of lower market prices heading into Monday’s grain trade. Add to it continued reductions in net-long positions by money managers based on speculation about how much grain U.S. suppliers will sell overseas, and it’s got the markets trading lower to start the week. Though U.S. grain — namely soybeans — is still selling on the global market, investor optimism is waning, with long positions for soybeans falling to their lowest levels since early September. Commodity Futures Trading Commission contract data, grain export sales data and South American crop conditions will be key things to watch for long-term grain market direction in the coming weeks. See more on the grain trade to start the week.