Morning Market Insight

July 26, 2018
Drew Johnson
Grain Marketing Specialist   
 Corn: 5 higher
Corn continues its trek higher thanks to wheat and European commitment to purchase more US soybeans. Ethanol continues to a support in the corn market as well. Ethanol production was reported at 1.074 million barrels per day. This is up from the 1.064 last week. Ethanol supplies also slipped from 21.8 to 21.7 million barrels. Export sales, released this morning, came in at 42.8 million bushels, with shipments at 50.5 million bushels. Bearish news for corn. Overall, the US corn crop looks to be in good condition. Weather forecasts look to turn a bit dryer the over the next couple of days. Technically Sep and Dec will find resistance at $3.67 and $3.80 respectfully.
Soybeans: 18 higher
 Soybeans are showing gains, this morning, on news that Europe will commit to purchase more US soybeans. This comes as a sign that Europe and the US are working on trade agreements in hopes that the US will lessen the tariffs against steel and aluminum. The Export Sales Report, released this morning, showed 55.2 million bushels sold, with weekly shipments at 30.3 million bushels. This is neutral news for soybeans. Technically speaking soybeans gapped above resistance and will now try to reach the next point.
Wheat: MPLS: 14 higher. KC: 8 higher
 Wheat continues to march higher. The spring wheat tour concluded that the average yield will be at 41.1 bushels per acre. This is higher than the 35.7 last year, but well below the 5 year average. World production problems continue to fuel the wheat rally. Export sales, released this morning, showed weekly sales at 14.2 million bushels, with weekly shipments at 15 million bushels. This report is bearish for wheat.Technically speaking, KW wheat is finding resistance at $5.70 with Minneapolis wheat holding just above the 100-day moving average of $5.99 futures. 

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