Corn – Overnight following the move from yesterday, active rains still seen for ND/SD/NE/IA/MO/IN
↑ Given that July was able to move above 460 it makes it easier for overnight traders to continue the support in anticipation that day session traders will continue buying today
↑ After yesterday’s rains there is still more in the 1 – 5 day for ND/SD/NE/IA/MO/IN
↔ Yesterday did show signs of fund short covering although this time the open interest report doesn’t support that, it is possible for funds to cover shorts on higher OI, just much less likely
↔ July has rallied 14 cents on the week, some light profit taking is possible, especially if the 6 – 10 day map suggests a clearing for planters to get moving again next week
Beans – First resistance of 1196 taken out and so was 1200, leaving more “easy” upside chart room
↑ Just as with corn, seeing 1196 and 1200 taken out yesterday leaves more “easy” upside chart room for overnight traders to continue adding support, next chart resistance is now the 100 day MA at 1222
↑ Also as with corn there appeared to be fund short covering and continued reaction to weather maps
↓ Exports recovered slightly yesterday but still at a poor 421K, weather is the #1 factor right now but it pays to keep in mind that this continued streak of poor sales likely means USDA lowering exports again
↔ July has rallied 28 cents this week which gives a higher chance at seeing a profit taking Friday
↔ All of this week’s rally is in anticipation of a poor planting number Monday, given what that number shows could mean an active day of trade on Tuesday
Wheat – Rains over HRW areas the last 2 days were disappointing, overseas wheat continues support
↑ Rains over the last 48 hours have been below what was expected in the forecast for HRW areas
↑ Some support may be seen from overseas wheat continuing its rally, this may lead some to believe that more buyers will look towards US wheat, it should be noted that is fairly rare though
↔ Funds are not as aggressively short wheat but they are short 76K so fund short covering is possible
Cattle – NE traded $2 higher yesterday, futures priced $2.50 over last week cash, KS/TX still silent
↔ Yesterday’s PM BB was choice -0.64 Select -0.09 packer BE at 184.43, packer cushion $2.07
↑ Almost a direct copy of last week where we see NE trade a strong $2 higher, futures jump to factoring in $2.50 higher and KS/TX remain silent, remember that KS/TX last week pulled the cash average down
↓ BB is now down to a level that is more than just concerning, it is low enough to make it tough to assume a higher cash trade next week even if the showlist is lower
↔ To maintain current levels in futures we need to see high volume of KS/TX trades at least $2 higher
↔ As wild as trade has been lately, June is still mostly sideways just trading a large range