June 10, 2015
Grain Marketing Specialist
USDA report to be released this morning@11AM, below is a look at the average trade guesses.
Corn futures managed to close Tuesday’s session unchanged even with a slightly weaker dollar. The USDA is still estimating this year’s yield to be 166.8 bpa, which seems to be keeping a lid on what futures can do in the short term. Heat pushes its way across much of the eastern and western corn belt which some believe should increase the G/E ratings for next week’s crop progress report. Carryout for the 15/16 corn crop looks to be raised slightly in today’s report due to better than anticipated crop progress reports. Targets are still an excellent tool to use to manage risk around USDA reports, potential target level would be at $3.67 July futures. Nearby resistance for July corn is seen at $3.6725 with support found at $3.4825.
SOYBEANS- Up 4
Beans have gradually been climbing back up to levels seen back in mid-May from the result of a slightly lower than anticipated initial G/E rating, weaker dollar and better than anticipated weekly exports. The carryout for this coming year’s crop looks to be lowered 13 mln bushels down to 487 mln bushels in this morning's report. The fear of some late soybean acres going to prevent plant continues to be talked about around the market. Nearby support for July futures can be found at $9.205 with resistance found at $9.645.
WHEAT- Minneapolis Up 3, Kansas City Up 3
World wheat stocks look to be increased slightly in today’s USDA report to 2.11 bln bushels. Domestic wheat supplies are estimated to grow 5 mln bushels to 798 mln bushel carryout in today’s report. Funds were buyers on Tuesday as they trim up their short position. If you’re looking at getting some NC spring wheat marketed around report release we are currently only 4 cents away from $6.00 September futures. Nearby resistance for Minneapolis July futures is found at $5.88 with support at $5.58. Kansas City July futures look for resistance at $5.5375 with support found at $5.24.