Down Overnight, Outsides Weak...
Jul 06, 2011
· Grains down overnight after yesterday’s bounce; Corn and wheat had gone down very far, very fast ahead of yesterday
· Some were looking for a ridging pattern over a portion of the Midwest, however it is looking unlikely at this point according to our lead weather forecaster; Dry/warm weather will continue across much of the Delta will allow moisture shortages and crop stress to continue again
· Crop ratings for corn, wheat and soybeans all improved 1% in the good-excellent category
· Deliveries: Soymeal 726 (from 7/5), Soyoil 334 (from 6/29), Rough Rice 5 (from 6/2), Oats 8 (from 6/30), Wheat 14 (from 5/24), Corn 0, Soybeans 0
· July-Dec corn trading 67 cents overnight; No deliveries along with the late planting have traders worried about supplies during the month of September
· Gap in Dec corn at 620 ½ could be a good resistance area; Producers may want to target this area for further cash sales
· Export Sales on Friday at 7:30am CST
There may be more fireworks in the July/Dec and Sept/Dec corn spreads. Its looking like we may have adequate supplies this fall without a crop failure, although the lack of deliveries and possible late harvest may be an issue. There is still some solid old crop demand for corn, however look for a portion of it to move into new crop if spreads continue to rally. Overall, Dec corn may be content near the $6 mark until we know more about the crop. Soybeans have been mostly a follower, although have held up well near $13. Corn should continue to be the leader on any major move.
Call the office with questions or concerns. (877) 310-5643 / email@example.com