June 19, 2014
Grain Marketing Specialist
Reports to watch out for….June 30th Stocks/Acreage
CORN – Up 3
Corn continues to show strength from Tuesday’s ethanol production report where we set a new record for the most ethanol produced in a week. Although production was high, stocks were lower than the week before as gasoline demand remains high. Funds have been slowly liquidating their long position, now down to 145,000 contracts. We have not yet tested the July contract low of $4.2175, which many traders believe will happen before contract expiration. Technically, nearby support can be found at $4.35 with the next level of resistance showing up at $4.4975 for the July contract. Below is a look at the day chart for December futures along with the stochastic and moving averages.
SOYBEANS – Up 3
The funds have continued working down their long position heading into the summer months, now at 75,000 contracts. With significant rains over South Dakota, Nebraska and Minnesota we may see crop conditions go down a few points in Monday night’s crop condition report. Basis surging in South America has U.S. beans competitive in the world marketplace, maybe leading to a little more export demand in the short term? Technically, we are looking for nearby support on the July at $13.61 with nearby resistance coming at $14.35.
WHEAT – Kansas City up 8, Minneapolis up 7
Conditions last Monday had the spring wheat crop rated 72% G/E with most areas in good shape now in terms of moisture. Technically, both Minneapolis and Kansas City futures have been oversold for a couple weeks now. The nearby floor put in for Minneapolis July is at $6.765 with Kansas City July futures at $7.02. Nearby resistance for Minneapolis July is $7.09 with the next wave at $7.29. Nearby resistance for Kansas City July is at $7.38 with the next level at $7.61.