June 15, 2017
Grain Marketing Specialist
Side note, Fed raised interest rates ¼ percent yesterday as anticipated.
CORN (Down 4)
The corn market started Wednesday strong but closed lower on a wetter 10-12 day forecast over much of the Eastern corn belt. Export sales released this morning were in line with expectations at 23.6 mln bushels, higher than the needed 6.2 mln bushels to reach the USDA forecast. The weekly ethanol report was rather benign, showing production at 1.002mln barrels per day with stocks higher than anticipated at 22.5 mln barrels. Make sure to get your targets in before the big report, only a couple weeks away. A good old crop target level for July futures is at the recent high of $3.91 and a popular target level on NC bushels is at the recent high of $4.09 Z17. Nearby support for July corn is $3.6425 N17 with resistance at $3.9175. Below is a look at the 7-day precipitation outlook.
SOYBEANS (Down 5)
Export sales for OC beans were in line with expectations at 12.5mln bushels. At this point any new sales puts us above the USDA export figure. There was also an additional 11.5 mln bushels reported for new crop sales. The soybean market seems to have found a short-term bottom after falling 40 cents in May as we are now up 10 cents for the month of June. The only consistent thing that looks to be expected in the bean market is volatility over during the next couple weeks before the report. A good target level to look at on OC beans is at $9.44 on the July and at $9.50 November futures for new crop. Nearby support is found at $9.095 with resistance at $9.4475 on the July contract.
WHEAT (Minneapolis Down 12, Kansas City Down 4)
Conditions are still on traders’ minds as nearby Minneapolis July futures set a new high at $6.4575, up 18 for the day, before pulling back to finish unchanged @$6.275 on Wednesday. The volatility on the board seems to be centered around trying to judge if the rain was too little too late or enough to add bushels on this damaged HRS crop. Export sales this morning reported 13.7mln bushels of new sales, just shy of the 14.9mln bushels needed weekly to reach the USDA forecast. Nearby support for Minneapolis July futures is found at $5.895 with resistance at $6.45. Nearby support for Kansas City July futures is found at $4.3925 with resistance at $4.60. Below is a look at the day chart for Minneapolis July futures.