CORN: Corn is higher this morning following the rally in the wheat and concern about more wet weather hampering corn planting in the Midwest. 1-4 inches of rain fell across parts of the Midwest over the weekend (with ground white with snow in Des Moines this morning). Weather model differ on rain chances for later this week with European model wanting to bring more rain in again. The first national corn planting progress report will be out tonight with estimates ranging from 2-5% (vs 2% last year). July corn continues to find support at $5.00 with resistance on rallies to $5.25.
WHEAT: Wheat is sharply higher this morning on combination of light rain/snow amounts in Southwestern Plains (generally less than 0.20 of an inch over the weekend) and the escalation of tension in eastern Ukraine/Russia as another part of Ukraine is trying to break away to join Russia. Weather forecast doesn't have much moisture for the Southern Plains short term while the cold snap this week is not expected to cause much damage. This afternoon's crop ratings should be steady to down slightly again in the Plains. Friday's CoT report showed the spec funds are long over 40k in both Chicago and KC wheat while long 10k contracts in Mpls. In export news Taiwan books 92k tons of US wheat for May/June ship (combination of DNS, HRW and SWW). On the Iraq tender for wheat, Russian origin wheat was the lowest offer at $331.69 a ton CIF (offers to remain valid until Thursday). Canada had the next lowest offer of $340.50 a ton while the lowest US offer was just over $371 a ton (over $1.00 bu premium to Russian wheat). $7.56-7.57 remains stiff resistance for KC July wheat.
SOY-COMPLEX: Beans and products are slightly better to start with support from wheat. Chinese soybeans were slightly higher overnight on talk that Chinese govt might increase the minimum target price above 4,600 yuan/ton. Rebounds in old crop beans to be limited after last week's weakness on China's cancelations of Brazilian bean cargoes. Weather forecast still on the wet side for the Midwest short term. Funds are long over 180k futures and options in beans but are liquidating this position. Spec funds are long over 70k meal but even to a small short in soyoil. The May/July soybean inverse continues to leak lower on softer CIF values. Weekly export inspections should be in the single digits this morning. Look for choppy trade today with wheat the leader today.
Add Us To Your Favorites
Follow the steps below to add www.alliedgrain.com to your bookmarks.