April 11, 2014
Grain Marketing Specialist
CORN – Down 1
We were able to close above $5.00 May futures yesterday after we spent much of the day below that mark. Weekly export sales came in at 25.9 million bushels, ahead of the 7 million bushels needed weekly to hit the USDA forecast. Argentina corn harvest continues to be a little behind with harvest progress now at 16.5% complete versus 28.2% last year. A good target level for new crop corn remains just below resistance at $5.24 December futures. A target fill at this level would equate to $4.45 new crop cash delivery into most Wheat Grower locations. Technically, nearby resistance remains $5.23 for May futures with nearby support still hanging in there at the $5.00-$5.02 level. Below is a look at the day chart for May futures.
SOYBEANS – Down 7
Beans faced pressure yesterday into last night on news of China defaulting on beans, reports of 20 cargoes in jeopardy with some of those being U.S. origin. Export sales came in at 2.9 million bushels as we are now 58 million bushels above the USDA’s upwardly revised forecast released on Wednesday. Soymeal continues to show strong demand as we are now 85% sold against projected annual exports. Technically, November beans are still showing resistance at $12.35 with support coming in at $11.80. A target fill just below resistance at $12.34 November futures would equate to $11.47 new crop cash delivery into most Wheat Grower locations.
WHEAT – Minneapolis Unchanged; Kansas City Down 5
Wheat futures continue to drop as weekly export sales came in at a disappointing 1.5 million bushels, well below the 9.1 million bushels needed to reach the USDA forecast. Minneapolis May futures are now 69 cents off the recent high with Kansas City May futures now 77 cents off recent highs. Technically, Minneapolis September futures show nearby support at $7.12 with Kansas City September futures showing support at $7.24.