June 3, 2013
Producer Marketing Manager
Grains are starting off the week stronger, led by soybeans. We get our first glimpse at USDA Weekly Crop Conditions this afternoon along with Planting Progress.
Corn: As of 7:45 – Up 6
Hot topics…….Wet weather, weekend weather, ponding, river levels (closures), lack of growing degree units, preventative planting. Planting progress for this afternoon is expected to be 92% vs. 5-yr average of 100%. Below is the 7 day precip map for May 25 – June 2. Technically…..July corn still looking at that gap up to $6.76 and Dec futures running into resistance at $5.73¾.
Soybeans: As of 7:45 – Aug Up 28, Nov Up 25
Beans bulls are continuing their swift advance above last week’s solid close. Demand and weather seem to be the most obvious factors. On Friday we reported good new crop export sales numbers for the 2nd week in a row. Does this price action indicate a 3rd week in a row of good sales? Estimates for planting progress are around 50-55% complete in this afternoon’s report. Technically look for us to test the February high of $13.50 on the Nov futures.
Wheat: As of 7:45 – MPLS Up 8, KC Up 3
Southern HRW harvest is progressing and reports are telling us wheat coming from OK/TX border is 58 lbs TW and yields are 15-25 bpa. Reports out of east north TX are better with yields as high as 40 bpa. Most area’s reporting great proteins. Rains in the forecast should slow progress some this week for both harvest in the south and planting of HRS in the north. We still have many acres in ND yet to be sown. Watch for developing news around the GMO wheat found growing in Oregon. So far Japan, S Korea, and Taiwan have suspended imports of US wheat.