Headlines:
- Is the soybean rally back on?
After days of profit-taking and modest selling in the Chicago soybean pit, prices have once again jumped higher in today’s trade. The Jul-16 contract settled 18 cents (1.5%) higher to close at 1080 cents per bushel. On a rolling spot month basis, the close this evening was the highest in 2 ½ years.
Summary:
The bulls were in control of the three grains’ price action today with Beans leading the away in the category of points gained on the day but it was Wheat that had the largest percentage increase on the day. July and December Corn ended 3.75 and 4.50 cents for the day which was at the high end of the day’s trading range. Both contracts have cleared the previous highs made early in the month and are now poised to challenge the highs made on April 21st. Today was significant because it marks the highest closing price since November 4th of last year.
CONAB’s May report warned that there could be some “wash outs” of Brazilian Corn exports during the second half of 2016. Brazil front-loaded their Corn exports in late 2015 to an extent that has left the country running out of Corn while they wait for the Safrinha Corn harvest to start next month. Brazil’s increased import efforts from the nearby region and some from the US yet to stem the increases in their domestic Corn prices.
Yesterday’s crop progress report showed US Corn planting is 75% complete vs the 5-year average of 70%. The Corn crop is 43% emerged vs the 5-year average of 34%.
Soybean futures shook off what had been 4 day of declines regaining everything that it had lost over the course of those 4 days. The move today was bullish as what appears to be fund buying returning in earnest. July Beans was up 16 cents and November Beans rallied 12 cents of its own. The US Soybean crop was reported at 36% planted vs the 5-year average of 32%.
Wheat futures made a significant move higher today on continued short covering and it may make it to 500 before finding key resistance. The July contract climbed 7.25 cents. The Winter Wheat ‘good to excellent rating” firm this week coming in at 62%. The Spring Wheat crop was reported at 89% planted vs the 5-year average of 64%. Lastly, the crop is 60% emerged vs the 5-year of 36%.
Crude Oil had another strong day to the upside advancing over 1.6%. Its next key level of resistance is at about 53.
