Closing Grain Commentary 5-14-2010

Published on: 17:51PM May 14, 2010
Corn opened the day lower and traded sharply lower through the first part of the session. Corn ended up finishing 6 cents lower on the week. We still believe corn is in a trading range for now. Up at $3.99 Dec corn we saw heavy producer selling and could see end-user buying another 10 cents lower from our current level.  Tuesday’s USDA Supply and demand report and recent Chinese corn purchases both confirm there is still stronger than anticipated demand. Even with great weather and great planting progress we could find end user support on breaks. Continued weak outside market influence should be watched closely as it can also offer resistance to the corn market.
Soybeans finished the day sharply lower finishing 8 cents lower on the week (Nov 10.) Today’s NOPA crush estimates fell below expectations by about 7 million bushels. Tuesday’s USDA report also showed carryout to be larger than expected. We still think beans can go lower from here so for a producer we recommend being well protected.  Call your broker about today’s new crop Soybean’s recommendation.
Wheat had a tough time keeping its recent week-over-week gains. It ended up finishing 33 ½ cents lower on the week (Dec 10.) There is still plenty of wheat right now with a billion bushel carryout. With wheat getting cheap compared to corn you could see some of that go to feed but we still see wheat going lower.   For producers we still want to store wheat when possible and sell into the deferred contract months to collect the carry. Please contact us with any questions.

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