Grains had another negative day as corn and wheat led the way lower. More follow through weakness and no help from the outside markets kept corn on the defensive for most of the day. Today the first cargo of US corn was delivered and accepted in China. This was seen as positive since many in the market weren’t sure whether the corn would be accepted or not. The forecast still remains favorable for crop development in the US. Soil moisture levels remain good and drier weather is in the forecast. With crop ratings still holding well; and unless the markets are supported by fund buying we could see more long liquidation from here. With the reports we have coming in the near trading sessions, we could see volatility remain high. Having your orders in above the market are good ways to capture any quick/sharp rallies if they come. We are approaching the June 30th report and the end of the quarter. The Stats Canada report comes out tomorrow morning at 7:30am. The report is data compiled from a survey of farmers which was taken before the weather impacted much of that region, so it may not reflect this weather. After the close of the grain session today we did see extra weakness in the outside markets. This may be negative for the overnight open at 6pm CST. If you are not caught up in sales please call your broker to go over your available strategies.
Get More From EHedger.