Corn: 2 to 3 higher
Beans: 6 to 13 higher
Yesterday and overnight, the rally continued in the front months for both commodities, as we continue to add premium into the market regarding a possible reduction in ending stocks. Analysts have the corn yield dipping about .8 bu./acre. Any more than that, and we end up below an ever pivotal 2.0 billion bu. carryout. This $3.90-3.95 futures level will be a fight to rise above as there is a lot of technical resistance in the way. Gasoline demand has continued to increase but is still lagging well behind last year by 14% for the same time frame.
Analysts are showing Brazilian soybean production at 131 million metric tons (MMT) this year, which is slightly less than the most recent USDA projection of 133 MMT. While this may have a bullish tilt, this is still higher than the 127 MMT produced last year.
As we fight to get to the ever-important $4.00 level on futures, take a look at this chart from the Van Trump Report this morning. We are currently above our moving averages and once prices are above $4.00, they do not tend to stay there very long. This is a continuous corn chart of the lead month, meaning it adjusts to the next futures month when the lead one expires.