Corn – GTE remained unchanged at 68%, yesterday’s selling did not appear fund related
↑ The GTE rating remained unchanged yesterday at 68%, trade expected it would be up 1%
↑ Weather maps lowered rainfall totals on the 6 – 10 day map this morning, temps below average
↔ Below average temps will be seen as very solid news for the core time of pollination
↔ Many are quick to suggest yesterday was a round of fund selling but neither volume spikes nor open interest suggest that was the case, in fact open interest was down 5796 contracts
↔ First chart resistance on any bounces would be 416 ½ but with Friday’s report lowering carryout slightly it is possible that Dec may make it back to the 2nd chart resistance level of 426 ½
Beans – GTE remained unchanged at 68%, light fund selling may have been seen but not large scale
↑ Same as corn, bean GTE was unchanged at 68% when trade expected an increase of 1%
↔ It won’t be until next week that some traders will start looking at extended weather maps for a first hint of August weather so for this week expect beans to react the same as corn to map changes
↔ Whether yesterday was tied to fund selling is more uncertain for beans but if so, then not large scale
↓ Bean exports remain poor, especially to China which has some in trade concerned this could be a lasting issue as last winter was poor and we have not seen a pickup so far this summer
Wheat – Spring GTE +2% now at 77%, this is the 3rd best rating in history, overseas on a small bounce
↔ Spring wheat GTE +2% when trade expected unchanged, may hold back a bounce in MN wheat
↑ Overseas wheat put in what looked to be a technical bounce last night allowing overnight to follow
↓ Different analysts are raising their Russian wheat crop estimates, putting pressure on all wheat
Cattle – BB broke the streak of 5 lower days, Monday reports were all mostly neutral, showlist -3400
↔ Yesterday’s PM BB was choice -0.57 Select +2.51 packer BE at 198.85, packer cushion $9
↔ Yesterday BB was higher finally breaking a streak of 5 lower BB days in a row
↑ Packer profits (mostly due to lower cash trade last week) are now back to $9 which suggests at least a possible higher cash trade this week as long as BB doesn’t resume moving lower
↔ Trade took most of yesterday’s news as neutral which is understandable given most want to wait to see if BB recovers further which 1 day does not prove and most want to see if packers will bid higher with profits now back to $9