July 2, 2012
Lynn Miller – Grain Marketing Specialist
CORN: 7:45 Old Crop trading +25, New Crop +22
Well, it did rain in the Eastern Corn Belt this weekend; however, with rains scattered and no end seen to the current heat during critical pollination, we’re going to trade weather. The trade looking for pretty significant deterioration in tonight’s crop condition report. Currently the funds are long a modest 137,000 contracts with significant buying power coming into the July 11th S & D report. Technically all three indicators are bullish the old and new crop. The door has been opened on the old crop to see as high as $7.25 while the new crop is looking at resistance of $6.75. This $6.00 cash level maybe a good place to set some targets with your local Wheat Growers Grain Originator.
SOYBEANS: 7:45 Old Crop trading +24, New Crop +21
The story hasn’t changed in beans we still have this unbelievable tight world supply situation that the market is trying to demand ration already. Add to that the fact that it isn’t raining and you have a pretty good bull story. Technically all three indicators are bullish the old and new crops with resistance at $15.64 and 14,50 respectfully.
WHEAT: 7:30 Spring Wheat trading +7, Winter Wheat +16
In reality, there is nothing in wheat that is real dramatic. Harvest is progressing along at a rapid pace with yields that have been spotty at best and now US Wheat appears to be priced out of the world market again. Look for the corn market to continue to be the real driver in Wheat for the time being. Technically all 3 indicators are also bullish both the Minneapolis and Kansas City. We are currently trading above the $8.47 resistance level inthe Minneapolis, and close over that will open the door to $9.23. While the Kansas City is trading just off resistance of $7.83.