Grains in Chicago closed a mixed note today. With corn closing up 3 3/4 cents and soybeans losing 9 1/2 cents. All of this in low volume trade until funds came in with closing buy orders in the corn pit. In outside markets a few items of note as the dollar index has sustained trade below support at 80Pt's. Counteracting that is meat complex's lack of any signs of buoyancy.
Corn seems to be favoring the energy side of the equation. This building confidence in corn demand as the funds have nearly tripled their corn position in the last 30 days. Technical support for July Corn is found at the 20 day moving average at 4.25 basis July Futures. Crop Conditions on the surface look bearish although, a relatively generic way to guess final yield this early in the game. Trade looking into next weeks USDA Supply and Demand Report with hesitation to press the downside.
Soybeans consolidating after huge gains yesterday. We are seeing some pressure on old crop soybean premiums as rumors of business switching to new crop are circulating. This leading funds to lock a few profits in especially after July/Nov hit the old 2004 barrier at +1.70.
Jeff Neisler
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