- Markets trading lower overnight with soybeans leading the move.
- Better chances for Argentine rains in the 6-10.
- Yesterday’s crop report in a nutshell…bullish corn, bearish soybeans, and wheat.
- Funds loaded up to the long side in soybeans.
- Taiwan reportedly bought corn out of South America in the last day.
- Corn technically continues to trend higher with resistance in the May at 4.00 and support 3.88.
- Soybeans technically in correction mode with support well below the market at 10.30 and resistance 10.80.
- Wheat technically trending higher with support at 4.85 and resistance 5.20.
- USDA reported 183,000 MT of soybeans to China for 2017/18 on the daily report.
- USDA reported 205,000 MT of soybeans to unknown for 2017/18.
- USDA reported 260,000 MT of corn to unknown for 2017/18.
- Argentina is still dry through the weekend, but better rains seen in the 6-10.
- Brazil has scattered showers over the next couple of weeks.
- US wheat areas have a little better chance of rain in the 6-10 day.
- Corn saw a boost yesterday from the USDA with US demand working higher and ending stocks lower. The market needs to “buy” corn acres, so look for the market to be well supported on pullbacks with higher prices likely over time.
- Soybeans did not get the bullish report that corn did yesterday and the market is loaded with speculative longs. Look for the market to punish them with as much as 70 cents downside risk in the soybeans.
- Wheat had a bearish report yesterday, but if corn holds together, it is hard to see wheat dropping significantly from here.
Fun Fact of the Day: The average American adult spends 93% of their life indoors.