April 8, 2016
Grain Marketing Specialist
Crude Oil and the US Dollar are supporting markets.
Light trading in the overnight session as commercial buying continues to support old crop corn.
The May contract has moved well above the old established lows at $3.54 futures. However, we have hit the 10 day moving average according to my chart. The December contract has just reached it old established lows at $3.73. Export sales and shipments, reported yesterday, were above what is needed to meet USDA projections for the marketing year. Traders expect the USDA to increase carryout next week for April’s Supply and Demand Report. Long term tendencies are still bearish with support around $3.57 May futures, and $3.70 Dec futures.
Soybeans: 2 higher
Commercial selling has been the story for the most part this week. Beans are trading a little higher on the overnight. Export sales yesterday were decent. The concern is in new crop export bookings. Only 100,000 bushels were added to the “sales to date”. Total new crop bookings are at their lowest level since before 2008. Storms are running through Argentina which could delay harvest, but are expected to miss Brazil. Support is around $9.00 for the May contract, and $9.15 for the November contract.
Wheat: 3 - 6 higher
Wheat is trying to hold support after the big sell offs this week. Export sales, reported yesterday, were very dismal, and continues to be our problem and pressuring the US market.
6-10 day weather forecasts show Above average temps, with precipitation chances for the western Plains.