SPREADING.......... Last week's weekly export inspection report on Monday showed 42 million bushels of corn was asked by a US exporter to be inspected by the USDA to be shipped near-term. This was a huge jump from the 26 m.b. the week prior. Bean inspections dropped sharply. In my last report, last week I said this is the rumored Chinese buying surfacing as it shows China slowing its bean imports to free port access or space for corn purchases and the actual sale would surface soon from the USDA. Today a sale of 480 t.m.t. of corn was sold to a unknown destination. Traders believe unknown is spelled 'CHINA'. Don't expect massive old crop sales to China. Most of the purchases to come will be new crop year delivery for after September 1 but this certainly supports old crop year demand psychology. Also bean sales will continue strong as Brazil is 75% sold now leaving the US as the world's continuous number-one port for soybeans. Crop progress reports were largely ignored as planting is just getting started. Corn seeded came in at 28% complete versus the 10 year average of 18%. At 35% we will get our first crop condition report that funds trade off of very aggressively. Beans seeded were 6% versus the 10 year average of 2%. Nothing here to trade yet. Spring wheat is 57% planted. Minnesota is 20% emerge, North Dakota 12% and Idaho 27% emerged all in very dry conditions but possibly poised for a frost early next week. The nations winter wheat crop remains robust at 63% good to excellent condition, down 1% from last week but up 5% from the first report four weeks ago and 28% better than a year ago. Soft red winter wheat in the eastern grain belt of Illinois and Indiana have the highest ratings with Texas and Colorado in the hard red winter wheat area the lowest. There's a couple of chances for frost damage Thursday and next Monday. Wheat traders are watching closely. Last week's lows on corn, beans and wheat should be the lows for the month as next week is May and traders will want to belong into the May 10 USDA crop report, expecting lower ending stocks. After all grains opened higher today with soybeans making new highs for the year, led to traders selling corn and wheat has a short spread hedge against long bean positions. We could see this unwind on Wednesday. Technicals read like this. July corns support is 6.06 then 5.90. Resistance 6.18 then 6.36. July bean support is 14.55 then 14.25. Resistance 14.70. July wheat is finding support at 6.30 then 6.12 with resistance 6.48 then 6.58. The 14.70 July bean resistance is last year's August high that led to a two dollars correction. A close over and sharply higher prices will occur.
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