Wednesday June 17, 2009

Today Grains in Chicago closed higher on a mid week short covering bounce. This lead by a warmer forecast for next week amid oversold conditions.

Corn closed up 3 1/2 cents in the December to 4.28 3/4 which is near the high end of the trading range. This could attract some follow through buying if we can trade through toady's high at 4.29 3/4. Though the short term trend has turned lower. Traders general consciences is for improving crop conditions in next weeks report will likely limit movement to the upside. As the corn crop conditions and progress are relatively near the average indicating still a strong potential for at least trend line yields.

Soybean closed up 5 in the old crop and up 21 1/2 in the November. Most of this lead by bull spread liquidation as it closed much lower as South American beans are offered much cheaper than U.S. soybeans. Soybean crop conditions seem to be improving also as we have been making progress. Yet, concerns over yield drag on the later planted soybeans are circulating.

Jeff Neisler