The market was higher early last night, but has turned lower this morning. July soybeans traded up to $10.88 and then quickly retreated. At 7:30am, soybeans are down 8-10 cents, corn down 2-3 and wheat down 1-3 cents. Yesterday’s rally appeared mostly technical in nature and it looks like we are trading on more of the same this morning. The move on July beans last night was near the high established on May 10 (report day) so can we find enough fresh buying to mount a challenge on the $10.915 level. July, September and December corn futures last night were only able to touch yesterday’s highs. Our weather is suppose to start warming up so how will the market react to improving planting conditions? The dollar is trading up over 200 and providing slight pressure to grains. Crude oil is steady this morning around $48.25. Profit taking on soybeans looks to be leading us lower across the board.
Corn has bounced back to trading slightly higher, but not sure it has the conviction to hold those gains as weather models have reduced rainfall totals across the eastern belt for the rest of this week coupled with warmer temperatures. Weekly ethanol production was down 1.46% compared to last week. Corn ground for ethanol estimated at 99.54 million bushel versus 98.211 million needed on a weekly basis to meet USDA projections. Despite soybeans and wheat closing lower, corn managed to make the highs of the day late in the session with July up $.025 at $3.995 and December up $.0225 at $4.06. July corn did trade above $4.00 today. Next target area is the 4/21 recent high of $4.0725. July soybeans finished well off the lows of the day, but closed down $.05 at $10.7525 with November soybeans down $.0975 at $10.575. Corn and soybean river basis levels improved 1-2 cents today on the May and June bids. Our temperatures have us finally back in the 70’s starting tomorrow with the rain holding off until next Tuesday.