Opening Grain Comments- Weaker Calls - Choppy Price action in the commodities on heals of a weak job report
Attached are a couple of webcasts from RJOMRT; they provide a little technical direction for corn, wheat, and the US Dollar.
Markets are called mixed this morning with July spring wheat the only grain in the green when the markets ended the overnight session as it was up 9-10 cents, Sept MPLS wheat was unchanged, July CBOT wheat was down 11, KC wheat was off 7, old crop corn was down 2, new crop corn was down 5, and beans where down 1.
At 8:40 outside markets have crude off about 15 cents, equities are softer with the DOW down about 50 points, and the US Dollar is softer with the cash index down 184 at 74.459. European wheat is unchanged which is about 4 Euros a ton better then it was when the grains where off.
Look for some consolidation in today’s trades and watch fund money flow as the new month starts. Basis remains firm but has started to show signs of softening for some of the wheat’s and many other of the grains simply get wider bid ask spreads almost daily.
Many to arrive spring wheat bids have rolled to the September futures; it looks like ours will move in the next day or so also as we simply can’t find anyone willing to buy against the July futures any more.
Technically yesterday did a little damage to some charts; wheat in particular for KC and CBOT; Corn and MPLS wheat still look fairly decent; most would say those charts are still longer term bull market charts. The one risk out there is the huge positions the funds hold.
Yesterday’s crop conditions and progress report didn’t hold many major surprises with corn conditions at 63% well below last year’s but in line with trade estimates. We are well behind planting but that is nothing new.
For more info on the yesterday’s report make sure to check out the Country Hedging Recap at
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