June 16, 2017
Grain Marketing Specialist
Upcoming USDA report releases: Monday afternoon crop progress/conditions, June 30th stocks report
CORN (Up 1)
Nearby corn traded a 12-cent range on Thursday and finished positive after spending most the day in the red. New sales for the week were reported in line with trade expectations at 23.6 mln bushels. Brazil’s large second crop of corn seems to be putting a ceiling on what potential corn exports will be this summer. If you have unsold corn in the bins and unsold corn to be harvested this Fall it may be worthwhile to start looking at target levels for December corn due to the 18 cents carry in the market. This is a good way to sell a percentage during a time frame that is generally favorable and take advantage of the carry in the market. If you have questions on this be sure to give your local Grain marketing specialist a call today! Nearby support for July corn is $3.6425 N17 with resistance at $3.9175. Below is a look at the seasonal day chart for December futures with 2015 in red, 2016 in white and 2017 in gold.
SOYBEANS (Up 4)
Strong demand was seen in the bean market Thursday as NOPA released their crush figures for the month of May, coming in well above trade expectations at 149.2 mln bushels. Export sales for OC beans were solid as well at 12.5 mln bushels with China being the top buyer for the week. Beans remain volatile as the trade has two weeks to position themselves before the June 30th stocks report. Will the USDA increase overall bean acres and decrease corn? Private estimates continue to funnel in with ranges from an increase to a decrease in bean acres planted. A couple target levels to keep an eye on are at $9.50 and $9.80 November futures. Nearby support is found at $9.095 with resistance at $9.4475 on the July contract. Below is a look at the temperature outlook for 6-10 days out.
WHEAT (Minneapolis Up 7, Kansas City Up 7)
Minneapolis markets continue to see increased volatility as traders try to estimate how beneficial, if at all, recent rains were over drought-stricken HRS areas. Wheat export sales were at the low end of trade expectations at 13.7 mln bushels, just shy of the 14.9 mln bushels needed weekly to reach the USDA forecast. Monday’s crop condition report will be a potential market mover as the trade waits to see if conditions continue to plummet. Winter wheat yields in the South continue to show low protein as they work their way North. Minneapolis futures are now about a $1.67 premium over Kansas City markets with the recent conditions drop in HRS wheat. Nearby support for Kansas City July futures is found at $4.3925 with resistance at $4.9025. Nearby support for Minneapolis July futures is found at $6.0975 with resistance at $6.4575.