Corn: Steady to better
Beans: Up 1-2
A weakening dollar and sales reportedly holding their pace pushed grain markets higher yesterday. Corn’s 5 cent rally was anchored in the strength of the soybean and energy markets. U.S. corn is no longer the cheapest in the world as Argentina looks to be greater than halfway through their harvest. Rumors are China still needs higher-quality corn, which will help the U.S. stay competitive. A close over $3.30 for the July contract might be the start of some long-term support. Only a half a penny away, if we could manage to close there, it would be at a level that we haven’t seen in seven weeks. Failure to close above $3.30 could push us back down toward the recent lows.
Soybeans appear to have broken out of their recent sideways channel and added another 10 cents yesterday. At one point, July futures were almost 15 higher. We saw a lot of beans getting priced yesterday and quite a few people take advantage of our one day push to $8 for New Crop (or $8.10 at Ralston). We are back to using our posted cash prices for new crop delivery, but if that is a level you’d like to use to start pricing a little New Crop, please contact your local GMA or CSS to put an offer in.
Old crop is about 50 cents higher than the lows set back on April 24. The weakening dollar and stronger Brazilian currency have actually made U.S. soybeans cheaper; in addition, Brazilian soybean stocks are getting tight as they have already shipped 44% of this year’s crop. Yesterday also marked the 4th consecutive day that a sale had been announced to China.
These recent rallies have come on quickly but can easily slip away just as quickly as they arrived. Today is a great day to clean up old crop sales. Landus would like a shot at your bin stored grain for delivery during June. The wet harvest last year and warming conditions will bring about quality concerns moving forward. We know cleaning out a hot bin in July isn’t fun. Before you make a pricing decision, give us a shot. Contact your local Grain Marketing Advisor or Customer Service Specialist to discuss pricing opportunities now available for delivery by the end of June.