May 29, 2014
Grain Marketing Specialist
CORN – Down 2
July corn rallied late yesterday to finish the day up 3 and helped us rebound from our Tuesday losses. As weather improves the trade is trying to determine how many more corn acres will get switched to beans in North Dakota. Funds were sellers of 9,000 contracts on Wednesday as they are still 211,000 contracts long heading into the summer months. We continue to test the 200 day moving average with our second consecutive close below $4.73 July futures. Bullish news at this point seems to be thin as crop progress is continuing at a steady pace and emergence conditions look promising. Below is a day chart for July corn looking at the 200 day moving average.
SOYBEANS – Up 5
Soybeans traded higher Wednesday on bullish news of 110 tmt of soybeans being sold to China for the 2014-2015 marketing year. Reports of Brazilian vessels heading to the U.S. continue to keep nearby July and August futures in check. We need 90 million bushels of imports to hit the USDA import projection. Funds remain long 140,000 contracts, selling 7,000 contracts during the session on Wednesday. The trade has been hearing reports of Chinese producers switching soy acres to more profitable corn acres for this upcoming year. Will this lead to a larger export number next year for the U.S.??
WHEAT – Up 2-3
Domestic wheat continues to be overpriced in the world market, leading to lower export demand. Minneapolis July futures tested the 200 day moving average of $7.1475 before rebounding to a close of $7.18 MWN14 on Wednesday. We have now lost 95 cents since our contract high set on May 6th. Kansas City July futures have also now lost $1.19 since the high back on May 6th. Below is a look at the 200 day moving average for the Minneapolis July day chart.