COMMODITIES | AGRICULTURE
RCM Grains Morning Wire
CN +1/2 SN +5 ¼ WN +4 KWN +5 ¾ MWN +3 ¾
- Markets higher for most of the night before corn went slightly negative at the end of the overnight session.
- Crop progress yesterday showed bean planting below expectations, which helped to give the market a boost overnight.
- Corn ratings near expectations with 64% g/e.
- Spring wheat ratings jumped to 68% g/e.
- Taiwan Sugar Corp. cancelled a tender to import 12k US beans and 23k US corn as they expect a drop in prices.
- Russia sold 34.2 tmt of intervention grain today.
- Dec. corn made a decent reversal on the charts Monday, trading to a new low for the recent move lower and closing higher. If a pull-back today finds buyers, look for a move to the upper end of the range.
- Cash corn and beans trading well above futures in most areas.
- USDA announced 240 tmt of beans sold to China for 2013/14 on the daily report.
- Only spotty showers expected across the Midwest for the next few days.
- Rains start in the NW Midwest on Thursday and work east through Saturday.
- The 6-10 and 11-15 periods are dry for most of the Midwest with normal to above normal temperatures setting in.
- New crop corn is likely still range bound, but it did just bounce off support, and I look for some follow-through to at least near the upper end of the trading range.
- Old-crop corn is trying to break out of its recent range, posting a multi-month high close yesterday and cash markets leading the way.
- China appears willing to buy new-crop beans when they drop below $13. Old-crop beans trading at a discount to cash makes me think that market is not done yet either.
- Wheat bounced off support yesterday. In the near-term, I think wheat has a hard time outpacing corn, but longer term, the corn/wheat spreads should start seeing wheat put more of a premium in to corn.
- Corn mixed, beans 5-10 higher, and wheat 3-5 higher.
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