June 8, 2017
Grain Marketing Specialist
Friday’s USDA Report will be out at 11 am… contact your local Grain Marketing Specialist to get your targets working!
CORN: As of 7:45 – up 4
Nearby corn finally saw a day settle above the 3.60-3.80 range yesterday. December corn also broke through that 4.00 level and ended above it for the first time since March 1st. We did hit resistance at 4.04, which was the high of the Dec contract back in late February. The dry and hot weather right now has been adding some premium to this market. Also, funds are still short, so some follow-through buying is still possible. Both US and South American farmers are taking advantage and starting to reduce old crop inventory and also selling some new crop bushels. Ethanol production numbers yesterday showed that we produced 999,000 barrels per day, down 21,000 from last week. Ethanol stocks numbers are also down 781,000 from last week.
SOYBEANS: As of 7:45 – up 7
We are seeing a nice bump in bean markets right now due to technical correction, follow-through from corn and wheat, and support from the weather premium. Recent strength is reassuring for this market, but we still have a long way to go before we reach a new high. Looking back on the last 145 years, there have only been 7 that started with a hot/dry June like what we’ve seen this year. However, that doesn’t really give a crystal ball as some of those years stayed dry and some turned back to normal, giving us above average yields. We will just have to wait and see what Mother Nature has in store for us. Below is a chart for new crop beans with retracement levels from the last major fall in prices.
WHEAT: As of 7:45 – Mpls up 6, KC up 6
“Rains of relief” in the forecast for the Northern Plains added some pressure to the Minneapolis wheat market yesterday, along with general chart correction. Dryness in the north is still a concern, as the trade is trying to decide whether or not it is too late for rains to make a difference on the already struggling crop. Kansas City wheat is seeing some strength spillover from row crops and early-harvest protein concerns. Dry weather in the south will allow for continued harvest of Winter Wheat. There seems to be weather concerns in most of the key wheat producing areas of the world... time to chew through that global surplus.