Written Commentary
CORN
Prices were $.07-$.08 lower as the first 4 contracts established fresh contract lows. Next support for spot July is at $4.05, the Jan-26 low on the weekly chart. Global numbers lean bearish which may prove the USDA new crop usage figures optimistic.
SOYBEANS
Relative to expectations I found today’s USDA data neutral to bearish for corn, neutral to friendly for wheat while neutral for soybeans. The lower closes across most of the Ag. space largely a function of lower energy prices, favorable weather while also seeking a price level that stimulates Chinese interest. Prices were lower across the complex despite today’s USDA data being neutral. Beans were down $.04-$.08, meal was steady to $1 lower while oil backed up 80-90 points. July beans made a new 4-month low before bouncing.
WHEAT
Prices ranged from $.01 lower in CGO to $.04 higher in KC. Today was the first time the USDA lowered their winter wheat production forecast in June since 2014. No changes to the harvested acres for now. Kansas yields cut 2 bpa to 35 bpa about all you need to know. HRW production is below 500 mil. bu. for the first time since 1957.
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