May 30, 2014
Grain Marketing Specialist
CORN – Up 1
Weather continues to look promising with the 6-14 day maps predicting warm and wet weather, which is putting pressure on the nearby corn market. Weekly ethanol production was 2,000 barrels larger than last week with ethanol stocks now 3% higher than this time last year. At this time last year we had 3.2 mln acres unplanted in the 5 northern states versus the 5.7 mln unplanted acres reported in last Monday’s crop progress report. Technically, July corn has now had 3 consecutive closes below the 200 day moving average of $4.73 with the next big level of resistance showing up at the nominal $5 July futures mark. Below is a look at the day chart for December corn.
SOYBEANS – Unchanged
The trade is still trying to figure out just how tight the domestic ending stocks will be, some believe less than 100 million bushels. China is once again a buyer in the world marketplace, purchasing South America origin beans with recently improved crush margins. Traders will keep a close eye on export sales this morning as we need sales to be close to zero or negative to stay in line with the USDA export estimate. Talks still remain of acreage shifts in the northern part of the country, as much as 2 million acres switched from corn to beans believed by some analysts. Below is a look at the day chart for November beans.
WHEAT – Down 2
Wheat continues to try and find its footing with futures dropping for yet another week. U.S. export values still remain very high in comparison with world wheat values. Spring wheat seeding continues in North Dakota while conditions remain good before possible weekend rains. North Dakota was shown at 59% complete in Monday’s crop progress report. Technically, we look for support in Minneapolis July futures at $7.065 with Kansas City July futures showing resistance at $7.23.