Midday Futures

Ag futures are trading on both sides of unchanged this morning.  This weekends Spanish Bank Bailout provided an initial rally last night as equity and energy futures were sharply higher and the US Dollar and interest rate futures were sharply lower.  The outside markets provided a brief rally overnight and into this morning.

Corn futures are currently down 2 to 7c.  There is a diminishing chance of rain thoughout most of the corn belt until tomorrow.  Rainfall accumulation over the past 48 hours has remained under .50".  The weather pattern is mostly staying in the North and Western Corn belt and doesn't appear to help the most needed areas.  Analyst are also anticipating a drop in overall corn condition in this afternoon's crop progress and condition report.  I expect the Good/Excellent category to be 69% down 3% from last week. 

Soybean Futures have been all over the board today and have a 27c range in the July Contract.  The market is currently unchanged to 4c higher.  It appears that China is going to continue to import large amounts of soybeans, the increase in Chinese imports will likely cause the USDA to increase projected exports. 

Wheat futures are 1 to 4c higher.  They are the strongest grain as of mid-day, based on "hot and dry" weather in Eastern Europe and China.

Happy Trading,

Justin R. Lewis, M.B.A.

V.P. - KIS Futures, Inc.

Toll Free: (877) 431-9805

Tuesday's ag futures have been all over the board.  May corn is up 17c, July Corn is up 8c, Sep Corn is up 4.5c, December Corn is up 1c.  Soybeans are down 8-14c.  Wheat is up 4-6c.  The meat complex is under a little pressure this morning, mostly based on outside negative factors.

Corn futures have been higher all day despite extremely negative outside pressures.  The focus has been "old crop/new crop" spreads as old crop inventories are heading toward a 16 year low while Chinese imports are estimated to increase roughly 60%.  Analyst are estimating ending stocks to be  1.714 billion bushels for the new crop vs. 749 million bushel last year. 

Soybeans have been the most volatile grain this morning and have been as much as 20c lower.  The market is caught in a position of having bullish fundamentals but also having record long managed futures positions.  If they begin to sell their long positions the market could move a lot lower.  This mornings sell off was mainly technical selling based on the market moving below the 20 day Moving average in SN2 and then hitting significant sell stops.  July Soybeans are currently hovering around their support level at $14.50/bu. 

Wheat futures have been higher most of the morning based on dry weather in Eastern Europe.  There is also some talk of our domestic harvest being slightly less than estimated.  There is wheat being cut in Southern Oklahoma, and yields have been above average up to this point.  Test weights have also been fairly strong just above 60lbs.  Fundamentals suggest wheat is the most negative of all of the grains.

Happy Trading,

Justin Lewis, M.B.A.

Toll Free: (877) 431-9805

There is a significant risk of loss when trading futures and options contracts. This information is not to be construed as an offer to sell or a solicitation or an offer to buy the commodities herein named, and each investor should consider the appropriateness of trading on this information, based on their objectives. The factual information of this report has been obtained from sources believed to be reliable, but is not necessarily all-inclusive and is not guaranteed as to accuracy. Past performance is not indicative of future results.

Grain futures are continuing their wild ride in today's session.  Corn is down 5-9c, soybeans up 1-11c, wheat down 5-8c. 

Corn futures are under pressure due to fast planting progress and excellent weather.  New and Old crop spreads are continuing their down move with the July/Dec corn spread down 3c at -67.4.  It will be important to see if July corn holds the $6.00 support level. 

Wheat futures are also down today due to large harvest ahead.  It's really easy to make a bearish case, just look at a wheat field.  There are scattered reports of disease and other problems, but they are few and far between at this point.  The biggest bull factor would be wheat's feed value verses the price of corn.

Soybeans are near their highs of the day.  Soybeans still need additional acres and at least trend line yields to meet demand.  New crop beans are up 1.5c despite new corn being down 7c. 

Outside market forces are most positive, and option expiration today could make the rest of the day very volatile.

Good Luck & Happy Trading,

Justin R. Lewis, M.B.A.

V.P. - KIS Futures, Inc

Direct: (877) 431-9805

Cell: (580) 335-1602

Twitter:  @jlewis58

Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition.

Corn & Soybean futures are higher this morning, with the old crop corn leading the way.  The price action this morning is still a "hangover" from Friday's USDA stocks report. 

May Corn futures are up 9c at $6.64 per bushel, while new crop Dec. corn is only up 2.5c at $5.474.  Th July/Dec corn spread is now trading $1.10, up 30c from last week.  Dec. Corn is still below the 50 day Moving average, keeping the trend negative.  Fall and Spring weather has allowed for excellent field preparation up to this point.  Yesterday's crop progress report showed corn to be 3% planted, less than anticipated but 1% above the 5 year average.

New crop soybeans failed to reach $14.00 this morning but did reach $13.97.  Most analyst believe that $14.00 is major resistance for November soybeans.  Soybeans are still in a positive trend but are in "overbought" territory.  The market is still trying to buy acres from other crops in order to meet world demand.  There is some talk of an early wheat harvest leading to a few double crop bean acres. 

Wheat Futures are slightly under pressure due to rainfall throughout the southern plains in the past 24 hrs.  There have been reports of 1 to 3 inches of rain across much of north Texas, Western Oklahoma and Kansas.  This will only add to the negative tone for wheat futures as the crop looks great at this point.  Resistance for July Chicago wheat is $6.70 and support is near $6.50. 

Happy Trading,

Justin R. Lewis, M.B.A.

V.P. - KIS Futures, Inc

Direct: (877) 431-9805

Cell: (580) 335-1602

Twitter:  @jlewis58

Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition.

Friday morning's USDA prospective plantings report has been one of the most talked about reports in the past decade. 

My numbers are slightly different that the "trade estimate" averages.  The main issue I see with these reports are they are based on 85,000 farmer surveys over the first 2 weeks of March.  A lot can and has changed over the past two weeks that could alter what a farmer is going to plant. 

The ratio of new crop corn to new crop soybeans is traditionally around 2.3.  When soybeans are 2.3 times the price of corn, there is little price incentive to plant more of either crop.  The current spread is 2.47, meaning there is a slight incentive to plant soybeans instead of corn.  This may in fact increase the amount of acres of soybeans and lower the amount of corn planted. 

Happy Trading,

Justin R. Lewis, M.B.A.

V.P. - KIS Futures, Inc

Direct: (877) 431-9805

Cell: (580) 335-1602

Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition.