Morning Market Insight
July 24th, 2012
Grain Marketing Specialist
As of 7:40am Old crop down 14 New crop down 12
Yesterday we saw corn experience a general sell off. What’s to blame? There is a cool front that is predicted to come through the latter half of the week for the northeastern Corn Belt. Along with this cold front comes a possibility of rain. This got traders a little jumpy and inspired some profit taking. Another reason for the weaker markets was growing European concerns, seems Spain is having a rough time over there. However, last night’s good to excellent crop report dropped another 5 percent putting the corn crop rating at 26% good to excellent from last week’s 31%. That should at least be enough bullish news to keep prices from drastically falling out of bed. Resistance point seems to be that magical $8.00, with the first support level at around $7.00
As of 7:40am Old crop down 34 New crop down 36
Prices plunged yesterday with some big profit taking resulting from a wetter weather forecast to hit the eastern Corn Belt later in the week. Last night G/E Crop Report dropped soybeans down to 31% only down four points from last week. South American production forecasted up 1.2 billion bushels by next spring; however analysts predict that it will not be enough to meet world demand if the U.S. weather pattern persists. Rains this week could cause some more selling in the bean market, but unless we see significant weather pattern changes I believe that patience is a virtue. For those that would like to make a sale on new crop, it seems the next point of support would be around $15.26 with resistance coming in at that $17.00 area.
As of 7:40am Spr. Wheat down 17 Win. Wheat down 20
Wheat followed corn and beans yesterday. Wheat exports inspections at 11.3 million which is down from last year’s 23 million. Funds long a record 67,000 contracts. Dryness continues across southern Ukraine. Trade sees non China/India world stocks declining to lowest level in years. Support levels at $9.15.