May 2, 2014
Grain Marketing Specialist
As of this morning we are 39 cents ahead of insurance prices for corn and 92 cents ahead of insurance prices for beans.
CORN – Up 1
Export sales came in well above of trade expectations yesterday at 33.5 mln bushels, ahead of the 8-20 mln bushel estimate. This still wasn’t enough to keep the corn market above water on Thursday. The funds selling 10,000 contracts coupled with a better looking forecast heading into the weekend have planting progress fears on the sideline until the next crop progress report Monday afternoon. Technically, we look for resistance in July futures at $5.32 and $5.34 for December futures.
SOYBEANS – Up 7
We wiped away the past 2 week’s gains yesterday for July futures, dropping 52 cents for the day. Export sales fueled this fire by showing net cancellations of just over 580,000 bushels of beans. For those with good memory, you may remember last year at this time where cancellations were over 3.8 mln bushels. Rumors continue to circulate of more beans heading to the U.S. with some of those now rumored to be of Brazil origin. Technically, for July beans we are hanging around support in the $14.60 area with the next level of support showing up at $14.44 SN14.
WHEAT – Minneapolis Up 3; Kansas City Up 9
Wheat was held down yesterday from weakness in the corn market. The wheat quality tour put the Kansas HRW crop at 260.7 mln bushels, the smallest crop since 1996. This would equate to an average yield of 33.2 bpa for Kansas, the lowest yield since 2001. High temperatures are forecasted in Oklahoma this weekend as temperatures could reach as high as 100 degrees! Technically, we look for resistance in Minneapolis July futures at $7.78 and we are hanging right at resistance of $8.14 for Kansas City July futures.