July 15, 2014
Grain Marketing Specialist
CORN – Down 3
We set new contract lows in both the September and December corn contracts yesterday before the market rebounded to our first positive close since June 27th. The crop condition rating last night showed the corn crop at 76% good/excellent, which is up 1% from last week. South Dakota’s corn crop rating improved 2% from 80% last week to 82% in last night’s report. A University of Illinois report stated the market is factoring in around a 170 bushel per acre yield into new crop prices at the moment. Technically, we still look for resistance in Sept futures around $4.00 with a gap just above that mark from $4.05-$4.10. Nearby support is tougher to pin down but with yesterdays price action we see support at $3.74 CU14. December futures show a gap on the board as well from $4.10 to $4.14.
SOYBEANS – Down 12
The national soybean crop remained rated at 72% good/excellent as South Dakota’s bean rating dropped 2% from 76% last week to 74% in Monday’s report. The report showed 41% of the national bean crop blooming with South Dakota’s crop shown at 56% blooming. Export inspections this week were pegged at 4.2 mln bushels, which was ahead of the 2.1 mln bushels needed weekly to hit the USDA forecast. Bullish sentiment to the market on Monday was fueled by concerns of crop development during this cold spell. Technically, we look for support in November beans at $10.25 with the next level of resistance showing up at $10.88 November futures. We have also gapped lower in beans as well from $11.32 to $11.29 November futures.
WHEAT – Kansas City down 2, Minneapolis unchanged
Winter wheat harvest was listed at 69% complete in last night’s crop progress report with most of Kansas now finished. The U.S. spring wheat conditions stayed the same this week at 70% good/excellent. South Dakota’s spring wheat rating remained unchanged from last week at 81% good/excellent. Weekly export inspections were reported at 13.9 mln bushels, which was 3 mln bushels below the USDA needed weekly export figure.