Schwieterman Grain:   New contract highs in July/December spread

Corn
Trends
Short Term: Down
Long Term:  Up
Overnight Trade: N -9 @7:30 AM
Corn, and particularly the new crop, was under pressure overnight due to the rains in some of the dry areas of the Corn Belt. Forecasts also suggest more rain is coming, which would have the Eastern Corn Belt in very good shape. Export sales were more than adequate at 216,300 MT for the old crop and 310,800 MT for the new crop. There isn’t much reason for pressure in the old crop when we keep seeing positive export sales, thus the new contract highs in the July – December spread.

Wheat
Trends
Short Term: Down
Long Term: Down
Overnight Trade: Chicago: N -15 KC: N -9 @7:30 AM
The Kansas City and Chicago wheat contracts are in a holding pattern due to harvest activity and support from the Spring Wheat. Export sales were uninspiring again at 374,100 MT, so we aren’t getting any support on the demand side of the equation. The July KW is still about 50 cents under the July corn, so that is still deeply in feed grain territory.

Soybeans
Trends
Short Term: Down
Long Term: Down
Overnight Trade: N -21 @7:30 AM
Like the corn, the rains are pressuring the soybeans. Export sales were good at 141,700 MT for the old crop and 473,000 MT for the new crop. On top of that we keep seeing daily sales announcements to China and unknown destinations, so next week’s new crop numbers will be big. On the charts, it looks like a test of last week’s lows are in the works.

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