- Markets trading higher overnight with general strength seen boosting prices at the end of the night session.
- South American weather is little changed with rains in the 6-10 and 11-15 periods.
- Wheat ratings yesterday were down 1% in KS to 12% good-to-excellent, up 1% in OK to 7% good-to-excellent, and up 3% in TX to 13% good-to-excellent.
- Corn technically remains in its higher trend with the move overnight pushing the market back near the recent high. Support for May at 3.80 and resistance 3.95.
- Soybeans technically remain in correction mode with moving average resistance at 10.50. Support is at 10.30 and 9.80.
- Wheat technically bounced off lows yesterday and its correction may have run its course. Support at 4.85 and resistance 5.00.
- USDA reported 210,000 MT of corn to South Korea for 2017/18.
- Argentina has chances for rains this weekend and next week. Overall, much of the crop is past the point of no return.
- Brazil is catching scattered rains, but fieldwork should pick up.
- US wheat areas are dry in KS and OK over the next couple of weeks.
- The corn market continues to see very limited pullbacks as strong demand is leading to good buying interest on any small pullbacks. I still think a bigger pullback is possible, as speculators that have been buying have had a pretty smooth and easy go of it. Longer term, higher corn prices look to be in the cards.
- Soybeans have seen a big pullback from their highs and are now bouncing. With weakness in calendar spreads a lot of underwater spec. longs in the market, I do not think the correction is over.
- Wheat bounced off support yesterday, so I believe that correction has run its course. Wheat is the only market “the funds” are still short, so I think that is a supportive factor moving forward.
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