Grains in Chicago closed mixed today with May Corn closing down 1 3/4 and December Corn Closing down 2. May Soybeans closed up 11 1/2 while November closed up 1. Wheat being the exception closing down 14 1/4 as a significant rain event forecast for dry areas of the western wheat belt late in the week.
The trade in Chicago in narrowing its focus into next Tuesday's stocks and acreage report. At which time, we will immediately after the open began to trade weather and how that effects ending supply and demand. Momentum studies are beginning to wane except for in May Soybeans where although are stable we have beaten the Argentina strike to death and are now trading the anticipated reduction in quarterly stocks. I would suspect that long liquidation could be in order the balance of the week.
The $9 area basis November Futures is likely a good place to hedge off some new crop length and likely December Corn around 4.20-4.30 should be sold barring any major spring/summer weather threats. Cash corn offers are building in the 3.90-4.00 area and have provided the corn market resistance on the front end. Chinese soybean sales cancellations could be in order as soon as the Argentina strike is resolved. I believe caution is in order for financial markets as we have moved to aggressively over the past week.
Jeff Neisler
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