June 19, 2012
Producer Marketing Manager
Corn: Up 11 as of 7:30 am
Yesterday July Corn closed up 20 cents and up 28 cents on the December as the market put some weather premium back into the prices. Monday afternoon crop conditions declined for the second straight week as nationwide ratings dropped 3%, now rating 63% Good/Excellent. Most notable declines from the previous week were in Indiana (down 12%), Ohio (down 11%) and Nebraska (down 8%). South Dakota was down 6% at 76% G/E. The 6-10 forecasts continue to show warmer temps for the most of the Midwest, with some limited chances of rain mainly focused on the northern parts of the cornbelt. Outside markets are still uncertain following the weekend election in Greece, still focusing on a possible Greek exit from the Eurozone and Spain’s rising bond yields that are around 7%. The Dec futures contract are approaching the $5.50 level and could see some good resistance at the $5.65 level.
Soybeans: Up 28 as of 7:30 am
Similar to Monday’s corn price action, New Crop soybeans outpaced Old Crop and posted gains of 25 cents in the Nov futures on the warm and dry forecast. As expected after the close, soybean conditions were down 4% nationwide compared to this time last week. Again Indiana (Down 13%) and Ohio (down 14%) led the decline followed by SD being down 8% at 76% G/E. Technically we traded thru our recent high of $13.50 on the November futures back on June 12th. This could set the stage for another run at the psychological target/resistance of $14.00 level we have bumped up against in April/May.
Wheat: As of 7:30 am, Mpls up 7, KC up 11
Spring wheat condition was up 1% from last week on decent moisture in ND and MT. SD dropped 9% from last week to 59% G/E. Winter wheat harvest progress is at 48% complete vs. 25% last year. Reports of combines starting to roll in Nebraska and NE Colorado. With warm temps and dry weather in the forecast HRW harvest should be on a fast track for South Dakota in the next couple of weeks.