June 12, 2017
Grain Marketing Specialist
Export inspections to be released this morning.
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CORN (Down 6)
Momentum in corn looks to have slowed after the positive 18 cents gain last week due to spotty rain falling over the weekend. The high temperatures over the weekend seemed to be a little cooler than anticipated aiding to the sell-off Sunday night. The extended forecast looks to have turned a little cooler with slightly more precipitation. The large spec funds are now estimated to be around 106k contracts short, down from 200k short a couple weeks back. The next big report is June 30th, where we will see an update on estimated planted acres and an updated stocks number. Nearby support for July corn is $3.77N17 on the 10-day average with resistance at $3.9175. Below is a look at the precipitation outlook for the next 7 days.
SOYBEANS (Down 6)
Nearby soybeans finished last week up 20 cents, which was the first positive week since the first week of May. The funds keep trimming their overall short position, now down to around 107k contracts. Soybean condition ratings should be released tonight and are expected to be around 66% Good/Excellent. It’s a little early to get too wrapped up in soybean conditions but trading heading into the June 30th report will be crucial to watch as the USDA will update planted and harvested acres. Nearby support is found at $9.095 with resistance at $9.4475 on the July contract. Below is a look at the day chart for November beans with the 50-day moving average.
WHEAT (Minneapolis Down 8, Kansas City Down 7)
Condition ratings continue to be the focus as we inch closer to wheat harvest. Minneapolis futures have rallied 26 cents during the month of June while nearby Kansas City is up 13 cents for the month. In world news, Egypt tendered for wheat last Friday and bought from Russia and Romania. Scattered rains over the weekend looks to have hit a few drought-stricken areas but condition ratings this evening are expected to remain around unchanged. Nearby support for Minneapolis July futures is found at $5.895 with resistance at $6.1775. Nearby support for Kansas City July futures is found at $4.3925 with resistance at $4.60.