May 21, 2014
Grain Marketing Specialist
Corn opened lower and struggled all day yesterday with both July and December closing down 3. 73% of the crop is planted and weather concerns are diminishing in forecasts for the next two weeks. July corn put in its lowest close since February 28th, 2014. On the overnight, July corn was unable to hold $4.75 support level, adding potential downside risk.. Weather will continue to be the “news” and dictate price action , but the market is feeling more comfortable everyday as more seed is put in ground.
Soybeans: 5-8 Better
Soybeans opened higher yesterday, on stronger soybean meal reaching $15.01 in July. However, soybean meal broke and soybeans closed $.15 ½ . Volatility continues with July futures attempting to trade above $15.00 yesterday before falling off sharply. Some remain uncertain that we have enough old crop supplies/imports to connect the old and new crops. Weather looks near ideal for planting in the week ahead.
Wheat: 1 to 2 lower in Chicago and KC, 3-6 higher in Minneapolis
Spring wheat planting pace should continue to accelerate as we move further into the week. The weatherman is calling for the first general rain in a several of weeks for the south region for Thursday into the weekend. Although the HRW crop is probably beyond the point of adding yield, these rains should help maintain what is already there. There are yield concerns for Black Sea wheat, as temperatures are forecast to be above 90 degrees in the wheat growing regions of southeast Russia and Kazakhstan toward the end of the week. In some of these areas less than 20% of their normal rainfall has been received.