June 2, 2017
Grain Marketing Specialist
Corn- up 2
Corn market continues to be range bound, this morning stuck between the 100 day MA and the 200 day MA and currently sitting at 3.72 on the July contract. 3.79 would be a good target level on old crop. We haven’t broke above that price since early March. New crop December futures are sitting at 3.91. Ethanol numbers came out yesterday, up 10 tbpd from last week at 1020 tbpd. Export sales came out this morning, a day late because of Memorial Day on Monday. Corn was down slightly at 16.8 mbu, expected range 18-26 mbu. Below is a day chart of the July 2017 contract, we look to be trading into a flag pattern and I would look for a break up following the support line, or a break down following the line of resistance.
Beans- up 3
Light volume over the first couple days of June as beans get pushed down by bearish news. Ideas of more bean acres on top of the 89 mil acres reported by USDA in March. This weekend’s weather looks to be favorable for planting and improved conditions across much of Indiana, Ohio, and Kansas. Old crop beans on the July contract have found some support at 9.12. Currently trading at 9.15. Export sales for beans were strong at 22.4 mbu with the expected range to be from 7-15 mbu. This morning USDA announced a sale of 200,000 metric tons of soybeans delivered to Spain, of the total 70,000 is for 2016/2017 and 130,000 metric ton which was previously this week reported as unknown destination.
Wheat- MPLS unchanged KC up 3
MPLS old crop wheat finally broke above the 5.75 mark and continued its leg higher yesterday closing at 5.78. Kansas City wheat trading side ways and pushing up against resistance at the 50 day moving average which sits at 4.34. The uncertainty of the crop being harvested and dry conditions in other areas lends support to this market and has helped push MPLS a bit higher. Overall worldwide we are not short wheat, we are still looking at a 1.159 bbu carryout so it is hard to be to bullish with that hanging over the market.