Below is a forward from Joel Fitch; who is our main Country Hedging contact. He will be joining us for our MWC Marketing Hour Round Table on June 22nd in Onida. Please make sure to put this day on our calendars.
Opening comments thoughts are weaker across the board based on a weaker overnight session and weak outside markets.
In the overnight session new crop corn was down 8, old crop corn was off 5 cents, beans are off 8 cents, KC wheat was down a dime, MPLS wheat was off 12-13 cents, and CBOT wheat was off a nickel in the front month with some of the deferred months off much more.
At 8:50 outside markets have European wheat off about 1.8 %, equities are softer with the DOW down 85 points, crude oil is off 2.00 a barrel, and the US dollar is up 371 on the Cash index at 74.563.
Looks like we might have some risk in that we see fund liquidation based on the weak outside markets; keep in mind the funds own plenty of our grain and tops are always seen when the markets look the best.
Yesterday we had a USDA report that was rather bullish new crop corn; yet we where not able to close corn limit up; which was a little disappointing. We did make new high closes which is good for the charts. The rest of the report which is mentioned below wasn’t super friendly.
Look for rather choppy volatile markets as we move forward; ideas would be for a some sort of consolidation with a slight upward bias heading into the end of the month stock’s and acre report. As seen below many are on the bullish side in terms of what actually will end up planted.
Basis remains on the firm side for all the grains which is another good fundamental factor leaning towards the higher price friendly side.
Please give us a call if there is anything we can do for you.
Thanks
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