Morning Market Insight

July 24, 2013
Drew Johnson
Grain Marketing Specialist
Corn: 4 lower
Corn market is trading lower today on better than expected crop conditions. Crop conditions, nationally, remained at 72% good/excellent. This is 10% higher than this time last year. Silking was reported at 81%. The crop is well ahead of average. Export inspections came in just shy of 52 million bushels. This was up about 3 million from last week, but still behind the 73.2 million needed weekly to keep pace with USDA predictions. US weather forecasts remain satisfactory for good crop growth, with mild temps, and above average precipitation chances for the next 6 – 10 days. Corn is in a minor up trend. Dec corn is finding resistance at $3.80 and $3.99 respectfully. 
Soybeans: 4 lower
Soybeans trading tried to hold on to small gains yesterday, but couldn’t quite do it. Tariff Wars continue to plague the soy market as the USDA reported, yesterday, that China had canceled 165tmt new crop optional sales. US crop conditions remain solid as soybeans creeped 1% higher to 70% good/excellent. This is 13% better than this time last year. It was also reported that soybeans blooming is at 78% this week versus the 63% average. Soybean export inspections were at 26.5 million bushels. This is 3 million more than last week, but 4.4 million behind the 30.9 million bushels needed, weekly, to keep up with USDA predictions. Weather forecasts remain favorable for soybean growth. November soybean futures are finding some resistance at the 20-day moving average of $8.67.
Wheat: MPLS: 4 lower. KC: 4 lower
Wheat is also lower to start off the day despite concerns over productions issues in other parts of the world. Winter wheat harvest continues at its normal clip coming in at 80% complete vs the average of 79%, with overall quality being okay. Spring wheat conditions were reported at 79% good/excellent. This was 1 percent lower than last week, but overall conditions remain well above the 33% reported last year at this time. Export inspections came in at 14.6 million bushels. This was down 2.7 million from the previous week, and 4.9 million below the amount needed to keep pace with USDA predictions. Resistance for spring wheat is at $5.73 futures, while winter wheat is finding resistance at $5.10 futures.

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