Grains start higher led by wheat on global crop concerns and lower Russian production, but the markets can’t get above chart resistance.
Randy Martinson, Martinson Ag, says July Chicago wheat could not get above the $7 level yesterday and scored a reversal and July Minneapolis wheat has been struggling with $7.50.
Corn and soybeans also failed at chart resistance again this morning and are consolidating.
Martinson says the markets look tired and need a bigger weather story to ignite further buying or short covering by the funds.
Plus, he says farmers selling has picked up around chart resistance areas in most of the grains and well on both old and new crop which also limits the gains.
Exports were tepid this morning at 29.2 mb/5.0 mb new for corn, wheat at 2.9 mb/11.2 mb new and soybeans at 9.8 mb/.9 mb new. So, if there are concerns about production in the Black Sea, Russia or EU or even planting delays in the U.S. that is not driving export buying.
The Wheat Quality Council Tour continues in Kansas and Day 2 resulted in yields of 42.4 bpa wich is above last year and so that has also been a headwind for the wheat markets.
Cattle are higher following a surge in wholesale beef this week but is it a function of kill cuts or stronger seasonal demand?
Martinson says while the cattle market technically has gotten back above resistance areas on the charts, he is not sure if the market can keep moving higher without evidence of higher cash.
