Corn

Corn traded both sides of the market today and managed to post gains. September corn closed up 1 3/4 at 4.51 1/2 and December up 1 3/4 at 4.66 1/4. Friday corn posted large gains and moved higher on technical buying. Corn broke the technical charts and now is finding support at the current levels. Today corn found it support from the haze that surrounds the current crop yield. Many groups are putting this once mega corn crop to bed and now have it just meeting demand. Demand for the year is about 13 billion bushels for corn thus anything below a 13 billion bushel crop would level no carry out. This would be very supportive for corn. It appears that we will have a 13.1 to 13.3 billion bushel crop. This helps keep corn on it toes. Friday the USDA will be releasing numbers on what they think the crop size will be. REMEMBER the UDSA will do what they think is right with the figures. They could still throw us a curve ball and the trade could not react favorably. I would expect yield to lower but not a lot. Expect the market to be range bound the rest of the week. Crop conditions are Very Poor 3%, Poor 8%, Fair 20%, Good 47%, and Excellent 22%. Basis is still weak and could continue to widen if the futures continue to rally.

Soybeans

Soybeans posted shape gains on healthy demand. September soybeans closed up 14 at 10.43 3/4 and November up 17 at 10.52. Soybeans have healthy demand and yield is a little less certain then it has been in recent months. Soybeans have moved through some technical’s that also supported the buying of soybeans today. Soybeans conditions are Very Poor 3%, Poor 9%, Fair 24%, Good 46%, and Excellent 18%. Conditions haven’t changed from last week’s UDSA crop progress report. I think that soybeans will also be ranged bound until Fridays report. I would expect yield to have a small change that could be neutral on the market. Basis for soybeans is steady and demand is healthy.

Wheat

Wheat closed lower today on a round of profit taking. December wheat closed down 4 1/2 at 7.53 3/4 and March down 3 1/2 at 7.61 1/2. Although it was a round of profit taking that drove wheat lower one can’t help but to think that it was a ripple effect from Kansas. The Kansas Jay Hawks where defeated by the NDSU Bison Football team. This stunned not only the wheat market but Kansas as a whole. GO BISON! On a more serious note Wheat fell on a round of profit taking after prices have been marching higher. I would expect wheat to position itself safely in front of Fridays report. Basis is improving on wheat because of its demand.

For current price and more information call New Horizons Ag Service.

Thanks for reading!

Jacob Bailey
Grain Procurement Merchandiser
New Horizons Ag Services
Office: 320-677-2251
Cell: 320-760-3825

The information contained in this document is taken from sources which we believe to be reliable, but is not guaranteed by us as to accuracy or completeness and is sent to you for information purposes only. There is a risk of loss when trading commodity futures and options. Country Hedging, Inc. bases its recommendations solely on the judgment of Country Hedging, Inc. personnel.