June 2, 2016
Grain Marketing Specialist
Corn managed to gain after a bearish start yesterday on a lower dollar and forecasted lower production out of Brazil due to weather. Planted acres, for corn, are up to date, even in the problem areas of Indiana, Ohio and Texas. Yesterday’s crush report showed 392.4 million bushels of corn used for ethanol in April. Ethanol production numbers will be out today. The potential for a large US crop is still there. Corn demand, helped by bean meal and Brazil prices, will keep this market afloat. Any real bullish push will depend on weather. A $3.50 cash NC corn sale is only a few pennies away! Get those targets in.
Soybean: 4-8 higher
The action yesterday in soybeans continues to firm my belief in “ask and you shall receive.” The bull was fed. 158.1 million bushels were crushed in April and is seen as positive. July soybeans finely broke through $11 futures, stemmed by soymeal demand, and US exports, at the Gulf, at a discount to Brazil. November managed to get over $10.75 futures in the overnight, but has settled back below that and is still having a tough time pushing through that level. The bull will still need to be fed, because the potential for a large US crop is still there. Keep making sales!
Wheat was going with the flow even though it was the only thing higher at the start of trade yesterday. Small pockets of the plains have traders concerned about quality, but for the most part things are looking good. Moisture patterns around the world also seem to be adding to the overall bearish idea in wheat.