June 21, 2012
Producer Marketing Manager
Corn: As of 7:40 Down 3
Markets are a little weaker overnight. Outside markets are as well with Crude Oil down $0.70 at $80.75, Gold is down $16/ounce. Good rains in IA, MN, MO and WI overnight, although it didn’t extend east of the Mississippi. Weather forecasts for the Eastern Cornbelt are still a little sketchy going into next week with a small chance of rain. As mentioned yesterday we continue to hear reports of Ethanol plants slowing down or shutting down due to poor margins and ability to source corn. Many of these being in NE and MN. This could continue to temper both basis and futures levels. Technical indicators are still bullish NC corn, momentum is slowing on July corn a little.
Soybeans: As of 7:40 Down 8
Yesterday’s price action saw the November contract rally up to that $13.95 level again and seen to be running into decent resistance at that level. Continues to be a weather watcher as well as corn. 8-14 day forecasts have more chances for rain in IN, IL, and OH and the market may view that as being more benefitial to improving soybean yields vs. a corn crop that is at or is nearing its pollination stage. Technical indicators are still bullish for both old and new crop.
Wheat: As of 7:40 Mpls & KC Down 3
Minneapolis led the wheat market yesterday, mainly in the July contract. Cash markets are all based on the September futures and looks like traders were covering shorts. Otherwise a follower of Corn and beans.
What to watch for: Export numbers this morning to gauge old crop demand, Crop Progress out Monday afternoon, and June 29 USDA Stocks and Acreage report.