Will the drought spread out of the southern plains?
CORN: 3 higher
The market started out lower yesterday as the pressure from the outside market weighed heavily on the prices. As the day progressed we saw a rally as buying came in ahead of the private analysts reports this week. After the session we received the first report as FC Stone released their projection of 148.4 bu/acre. This was marginally higher than the last USDA report and since the trade was looking for a slight reduction will probably be viewed as slightly negative. Technically we are still muddling along in the sideways channel that I showed you in this space yesterday.
SOYBEANS: 11 higher
The outside markets and poor exports kept pressure on the bean market yesterday. We have some private analysts projecting that exports could come in as much as 100 million bushels less than the current USDA projection. After the close we received the FC Stone report which estimated the national average yield this year at 42.2 bu/acre. On face value that would seem a little bearish as well. Technically, two of my three indicators are bearish with support showing up in the January futures at $11.63.
WHEAT: HRS 6 higher HRW 1 higher
The two major story lines have not changed much for weeks. We have the cheap Black Sea region wheat on one hand and the HRW country drought on the other. Egypt was in the market for wheat yesterday and once again ended up buying from Russia and the Ukraine. In winter wheat country we have 46% of the crop rated as good to excellent. The drought is most noticeable in Texas where a mere 21% of the crop is rated as good to excellent. Technically, as you can see on the following Minneapolis March futures chart, we remain in a sideways pattern.
The information contained above was taken from sources which Wheat Growers believe to be reliable, but is not guaranteed by Wheat Growers as to accuracy or completeness and is made available for information purposes only. There is a risk of loss when trading commodity futures and options.