Morning Market Insight
July 27th, 2012
Drew Johnson
Grain Marketing Specialist

“Ninety percent of the game is half mental.” Yogi Berra


Corn
As of 7:45am Old crop up 6 New crop up 6

There were some showers that passed through the western Corn Belt yesterday, but no major precipitation amounts were reported. The weather outlook is looking warm and dry. Yesterday, day two of the crop tours are reporting poor to very poor conditions, with one tour projecting Iowa corn at 117bu/A. Along with lower ethanol production, weekly exports shown are also down. China decided to cancel some new crop corn contracts. All this news has traders just looking for something to go on. Informa group will have their estimations out today mid morning maybe that will have the news to find direction for this market. Right now Dec corn seems to be holding on to support around that $7.75 level. If corn should happen to slide look at support holding around $7.28 for new crop corn. If it breaks through that look to see support at $6.87.

Soybeans
As of 7:45am Old crop up 18 New crop up 18

Trade continued to liquidate their position yesterday with cooler and wetter weather news. Soybean demand remains somewhat strong. Exports reported at 517,000 tons of new crop beans versus last year’s 362,000. A crop tour in Iowa has reported less than desirable findings and projecting a 30 – 40bu/A verses 50bu/A last year.  This market seems to be consolidating and just looking for somewhere to go. Informa group’s estimation report will be out today mid morning. Let’s see what happens. Support levels for new crop beans around $15.50.

Wheat
As of 7:45am Spr. Wheat up 14 Win. Wheat up 11

Wheat was a followed row crops yesterday. Export numbers are down from last year. Exports reported at 367,000 tons versus 473,000 last years. Trade continues to lower Russia crop production and is expecting a 9mmt drop from what the USDA forecasted.. Spring wheat tours have found yields that are in line with the USDA’s predictions. Until some breakout news wheat will continue to follow corn. Support levels at $9.56.