July 25, 2016
Grain Marketing Specialist
Markets getting a boost from European stock and wheat markets.
Corn: 1 higher
Corn moved higher in the overnight on some follow through buying after Friday’s reversal higher. We are also seeing some support from the wheat markets. Crop Progress report, out this afternoon, is suspected to stay steady. The Vegetation Health Index, for corn, improved despite the recent heat wave and still suggests a 168.6 bushels per acre average yield. Traders will mull over how good, or how bad the recent heat wave was as we progress through the week. 6 to 10 day and 8 to 14 day weather forecasts are warm and wet. We have established some new lows at $3.26 in the Sep futures and $3.33 in the Dec.
Soybeans are trying to find some gains along with wheat and corn this morning. Weather forecasts show opportunity for good yield potential. The new crop corn and soybean ratio is around 2.7. Speculators will most likely continue liquidating their long soybean positions to get the ratio back to the average of 2.5/2.6. Support for August soybeans is at $10 and support in the Nov is around $9.75 futures.
Wheat: 5 higher
Wheat is leading the market this morning, and there has not been too many times I have been able to say that. Rain in Europe seems to be the culprit, and is potentially causing more damage to the crops there. Resistance, for September Spring Wheat is at $5.05 and $5.10 futures. Sep Winter Wheat is at $4.25 futures.