June 25th 2012
Grain Marketing Specialist
Below I have enclosed a 6-10 day precip and temp outlook map. That may be all we need to know this morning. Above average temps and below average moisture look to feed this weather market this morning.
Corn: As of 7:30- oc 18 higher, nc 24 higher
Last week we seen good strength early on in the week before struggling to close above the 38.2% retracement basis the Dec. While we slept Dec gapped higher as weather looks to continue its hot and dry cycle particularly in the eastern corn belt as we move into the critical pollination period. Technically momentum indicators remain bullish with next level of resistance at 5.87 CZ2. Crop rating this evening are expected to decline once again particularly in the eastern corn belt. Funds net long a historically low 102,000 with potential room to grow given the right motivation. It will be interesting to see how we react this week as traders position themselves a head of the much anticipated June stocks and planted acreage report on Friday.
Soybeans: As of 7:30- oc 34 higher, nc 45 higher
The soybean balance sheet has even less room for production problems than corn or wheat and what has been affecting the corn market has been also affecting soybeans. Hot dry conditions look to show a ratings decline again this evening. The Nov contract put in new highs last night finally taking out that $14 mark. Funds net long an already large 232,000. It will also be interesting to see how we react this week as traders position themselves a head of the much anticipated June stock and planted acreage report on Friday.
Wheat: As of 7:30- 17 higher
Concern over the Russian wheat crop and spill over strength from row crops continue to add strength to the wheat market. Momentum indicators remain bullish for all three wheat’s with Minneapolis looking to test the 8.08 MWU12 May high and KC wheat looking to test the 7.42 KWU12 May high if we are to sustain this rally.