June 6, 2014
Producer Marketing Manager
Tough week on grains……Funds were net sellers of another 7,000 contracts yesterday and continue to trim their long position.
CORN: As of 7:45 – UP 1
Ideal weather continues to pressure corn. The Dec contract closed below $4.50 for the first time since January 29th. Breaking below this level, we may look to test the contract low of $4.35.
SOYBEANS: As of 7:45 – Up 1
Precip and temps are also good for beans. The November contract is testing the $12.06 ¾ area again this morning and will be a key level to hold. This was our May 13th low and also coincides with the 38% retracement level off of the late Jan to Mid May rally. We are still posting around $11.25 cash price for new crop soybean contracts.
WHEAT: As of 7:45 – MPLS Up 5, KC Up 7
Heavy precip forecasted thru the next 5 days for the southern plains where harvest is just getting going on the HRW crop. Will this cause some issues to a mature crop in the field as it pertains to test weight and sprout damage (Falling Numbers Problem)?