Written Commentary
CORN
Prices were $.07-$.08 lower as the first 4 contracts established fresh contract lows. Next support for spot July is at $4.05, the Jan-26 low on the weekly chart. Global numbers lean bearish which may prove the USDA new crop usage figures optimistic.
SOYBEANS
Relative to expectations I found today’s USDA data neutral to bearish for corn, neutral to friendly for wheat while neutral for soybeans. The lower closes across most of the Ag. space largely a function of lower energy prices, favorable weather while also seeking a price level that stimulates Chinese interest. Prices were lower across the complex despite today’s USDA data being neutral. Beans were down $.04-$.08, meal was steady to $1 lower while oil backed up 80-90 points. July beans made a new 4-month low before bouncing.
WHEAT
Prices ranged from $.01 lower in CGO to $.04 higher in KC. Today was the first time the USDA lowered their winter wheat production forecast in June since 2014. No changes to the harvested acres for now. Kansas yields cut 2 bpa to 35 bpa about all you need to know. HRW production is below 500 mil. bu. for the first time since 1957.
Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM. The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared. The information provided is designed to assist in your analysis and evaluation of the futures and options markets. However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.
