July 24, 2017
Morning Market Insight
Corn: Down 8
A very weak start today, gapping 5 cents lower on the overnight and traded down to a low of 9. Rain across various parts of the corn belt are helping during pollination and helping fight off the heat wave now as the forecast turns a bit cooler. New crop December futures gapped below the 50 and 100 day moving average. Looks like on the nearby contract the next resistance level will be the 50% retracement at 3.76. Significant portions of the western corn belt are in need of moisture. The 6 to 10 day forecast looks dry, but we will need regular amounts of moisture to keep the crop moving along. On the other hand the Eastern corn belt is looking for a break from recent rains. Most trade estimates believe nationwide yield will be closer the 165-168 bpa vs. 170 bpa yield that the USDA is looking at. The USDA announced a 135,000 mt sale to an unknown destination for market year 2017/2018.
Beans: Down 19
Beans also gapping 9 cents lower on the NC bean contract following global oilseed and vegetable oil markets lower. Weather improves over the weekend which gave back some of the premium vs corn from Friday. The new crop contract still sits well above all major moving averages. Crop conditions come out this afternoon and the trade is expecting a 1-3% decline in soybean conditions again.
Wheat: MPLS down 10 KC down 8
Following the corn market lower. Chances are recent rains won’t help the Spring Wheat crop conditions as it is quickly maturing, last week nationwide was 34% G/E. MPLS spring wheat market trending sideways slightly off the highs we hit the early part of July and the September contract is sitting 2.04 higher than it was in May.