June 20, 2014
Grain Marketing Specialist
We are within 10-15 cents of $4 cash corn for Jan, Feb and March deliveries of 2015, might be a good initial sale on increased production in 2014!
CORN – Down 3
Corn saw the biggest positive gain seen in a couple weeks as we climbed back above $4.50 for July futures. Some of the strength seen the last couple trading sessions can be attributed to a few things, a technical bounce, flooding in isolated areas and carryover from a strong weekly grind number from the ethanol production report Tuesday. Exports were not fueling the rally as they came in at 4.3 million bushels, well below the needed pace to meet USDA projections. Technically, we broke through nearby resistance in July futures yesterday at $4.4975 with the next resistance level showing in the $4.60 area.
SOYBEANS – Down 10
Weekly exports remained strong this week coming in at 3.6 million bushels, well ahead of the 1.7 mln bushels needed weekly to reach the USDA forecast. Meal sales continue to be very strong as well, perhaps pulling some of the DDG demand as of late?? November futures are still trading at a premium to insurance, might be a good time to place an additional target as we approach $11.50 NC cash at most Wheat Grower locations! Technically, for November beans we look for nearby resistance at $12.325 with support showing at $12.05. Below is a look at the day chart for November beans.
WHEAT – Kansas City down 3, Minneapolis down 2
Export sales were towards the lower end of expectations at 13.7 million bushels compared to the 13.5 million bushels needed weekly to hit the USDA projection. The U.S. and Canadian crop looks to be in great shape as Saskatchewan’s spring wheat is rated 87% G/E. Technically, the next level of resistance for Minneapolis Sept looks to be at $7.15 with support at $6.83. Kansas City Sept futures are showing resistance at $7.40 with support at $7.03.