Written Commentary
SOYBEANS
July soybeans closed higher on the session but near 12 cents off of the highs of the session. Strength in the other grains and an early rally in the stock market helped to support. July meal closed moderately lower on the day and the selling has pushed the market down to the lowest level since January 28. The market is extremely oversold and vulnerable to a corrective bounce at any time, but traders await some type of supply news which might support. July oil is finding support from the general idea that more price rationing may be necessary to reduce vegetable oil consumption, especially if government mandates remain in place for biodiesel production..
CORN
July corn closed higher on the session with an inside trading day. The forecast will allow most major growing areas to be quite active over the next few weeks to get the crop planted, but there is still some concern with Minnesota and the Dakotas with more rain in the short term forecast. News that France shifted plantings to more oilseeds and less corn was also seen as a positive force.
WHEAT
July wheat closed unchanged on the session after choppy and two-sided trade. July Kansas City wheat closed moderately higher on the session as traders view the longer-term forecast as bullish for the market with a lack of good moisture for Kansas, Oklahoma and Texas. Crop conditions have improve some with the recent rains, but this will not be enough to bust the drought and the two week forecast shows very little rain in the region. In addition, more rain in the forecast for the Dakotas and Minnesota might limit spring wheat plantings. July Minneapolis wheat closed higher but inside of yesterday’s range. Yesterday was a key reversal but it will take follow-through selling below 1202 ½ for July Minneapolis wheat in order to confirm a near term peak..
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