May 23rd 2012
Grain Marketing Specialist
Corn: As of 7:40- unchanged to 1 lower
A wetter forecast for the Midwest and favorable progress/conditions had funds tripping over themselves yesterday selling up to an estimated 25,000 contracts. The July broke the 6.00 market which could open us up to the 5.72 recent low if we are to continue lower. Thru the night we traded north and south a few cents of that $6.00 mark. Rain over the next few days will be key. Funds estimated long 135,000.
Soybeans: As of 7:40 - 21 lower
Talk of Chinese deferring or canceling coal and iron ore purchases led to concern about their economy and decreasing crush margins questioned their continued appetite for soybeans. Favorable moisture forecasted for the Midwest and a fast planting pace also added to the sell off yesterday. Rain over the next few days will also be key for soybeans. Funds selling 9,000 yesterday, now long still an estimated large 241,000 contracts. Yesterdays break lower has moved my indicators bearish. Talk this morning about Chinese bean cargo cancellations adding continued pressure.
Wheat: As of 7:40- Spring Wheat 3 lower, Winter Wheat 12 lower
Wheat was lower on overall weakness for grains and forecasted moisture in the FSU/Black Sea areas. Recent hot dry weather is expected to lower Kansas production as harvest is expected to start soon. Lower production domestically will still, at the end of the day leave us with adequate stocks.