Corn and beans finished stronger while wheat was lower. December corn didn’t make new contract highs but finished up 5 ¼ cents at $7.75 ¼. November soybeans finished 10 cents higher at $14.57, and December wheat down 4 ¼ cents at $7.90 ¾.
Despite yesterday’s bullish crop ratings data the market came into the day sharply lower. We did have headlines talking about Ukraine expecting a record maize production this year of 18-20 Mill MTs, but this should have already been somewhat discounted in the market. Despite starting out weak grains eventually found support starting with the beans and towards the end of the session corn made its way back higher. Corn’s trendline resistance remains at about the $7.87 level for December.
Yield is still the major question and there is a wide difference of opinion still. Yesterday crop progress lowered the corn rating by 3 percent, and the bean rating by 2%. Until we get more definitive information from harvest the market could remain supported on production fears. If corn yields are lowered from current guesses obviously we can still see this market take out the highs. We like remaining in sustainable hedges and are cautious at these levels.
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