July 31, 2013
Producer Marketing Manager
Corn: As of 7:45 – Nearby Up 1, NC Down 3
Corn traded both sides yesterday before closing 4 higher on the Dec contract. Temperatures for the next couple of weeks look to be unseasonably cool….while it has been good for pollination, we are needing some warmth to get this crop to maturity. The late planted crop combined with the cool temps is starting to feel a lot like 2009. We are very oversold on the Dec contract and have bottomed a little for now. I would watch the resistance at the $5.00 futures level, which is also the 50% retracement level from our last move lower.
Soybeans: As of 7:45 – Up 1
Beans were the weakest leg yesterday, trading down $0.17. Overnight we did trade below $12.00 for the first time since early May. Funds still remain sellers of beans/meal/oil. Today is First Notice Day on the August Bean, Meal, and Oil contracts. So far no deliveries of Beans or Meal, but have seen Oil deliveries of 846 contracts. Below is the weekly continuation of the Nov contract, definitely oversold….not sure we have bottomed yet.
Wheat: As of 7:45 – MPLS Down 1, KC Up 1
Wheat markets posted positive numbers on the day. Good news on the export front with news that Taiwan Flour Miller’s Assoc bought 97,200 tonnes of US milling wheat for Sept shipment. This shipment had dark northern spring wheat, hard red winter and western white wheat. Egypt made headlines announcing their tender from earlier in the week. The business went to Ukraine and Romania, the US values remain approximately 65c/bu out of the market for SRW. Small showers has the HRS harvest in SD on hold for the time being.