Schwieterman Grain:   Same story -- dry weather and strong demand

Corn
Trends
Short Term: Up
Long Term: Up
Overnight Trade: N +4 @7:30 AM

The July corn is knocking on the door of another new contract high and thanks to a little bit of bear spreading, the December contract is as well. There isn’t anything new moving the market, we are still dealing with dry weather in Brazil and demand that is too strong. July corn traded over July KW for a while yesterday, which is a rare occurrence, but look for a test of the record from 1996, which had the July corn 12 over the July KW.

Wheat
Trends
Short Term: Up
Long Term:  Up
Overnight Trade: Chicago: N +2 KC: N +2 @7:30 AM

The wheat market still looks most susceptible to a deeper correction, but if it doesn’t happen in the next couple of days then the bears are going to give up. At the current spread level it is going to be very difficult to hold the wheat down when the corn is still moving higher. If you are a wheat bear, you really need to corn bears to get to work.

Soybeans
Trends
Short Term: Up
Long Term:  Up
Overnight Trade: N +13 @7:30 AM

The soybeans were firm overnight, but the market is still in consolidation mode. There is a strong possibility that the soybean oil makes another new high today, which would be supportive, but probably won’t be enough to get the soybeans to the highs. A strong export sales report tomorrow would be the best thing for the bulls.

Bret Crotts
620-275-4133
888-437-9131
bret@swbell.net

NBW Reports