Closing Grain Commentary 5/17/2010
May 17, 2010
Corn opened the session lower but off the overnight lows. Most of this can be attributed to outside markets. The European debt crisis is still on the front of everyone’s minds. This has allowed for large upside swings in the US Dollar and has brought commodities in general down with it. The weather forecast also remains favorable as a ridge is expected for portions of the Midwest into the first part of next week. Corn finished the session towards the lows at $3.56 (July Corn.) Crop progress shows corn planting progress at 87% vs 61% last year and 5 - year average at 78%. Crop condition shows corn at 67% percent good to excellent. These were pretty much in line with estimates.
Soybeans also broke recent lows and settled Nov Beans down at $9.16 ½. Beans continue to remain weak as we approach the major trendline on the weekly continuous chart (see chart below.) If beans happen to settle below this trendline, this could be seen as technically bearish. Soybean crop progress came in slightly bullish at 38% planted which is below the estimates around 45-46% planted.
Wheat opened up near unchanged and traded lower into the day. Dec wheat finished 2 lower at $5.17 ½, while the contract low for Dec wheat is 5.07 (April 5th 2010.) Wheat supplies remain large and we continue to see wheat head back towards those lows, with potential for large swings in between. Planting progress for Spring wheat is at 79% while last year was 49% and the 5 – year average is 80%. Winter wheat crop condition remains unchanged with the good to excellent category at 66%. now trading near unchanged.
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