Grain Tidbits - June 8, 2018

CORN: Planting progress for corn ending the week of June 3rd shows US corn is 97% planted versus 95% last year and a 5 year average of 95%. Corn futures are narrowly mixed after moving to new lows overnight. As of now, July corn is up 1/4 cent to 3.76-1/2, and 15-1/2 cents below the contract's 200-day moving average that is now serving as technical resistance. Dec is up cent to 3.97 with that contract's 200-day MA at 3.97-3/4. Fresh selling in corn has occurred in conjunction with the exodus of Managed Money longs this week, keeping open interest up. 

SOYBEANS: Planting progress for soybeans was at 87% ending the week of June 3rd, compared to 81% last year & a 5 year average of 75%. As of now, Soybean futures are down 2-1/4 cents in Jul beans to 9.72 after the contract recorded its lowest price point for the year overnight at 9.62-1/2. Nov is down 2-1/4 cents to 9.92-1/2.  We got below $10.00 in Nov beans. Further weakness, however, may still lie in that we have not weeded out the core of longs in beans, and mainly soymeal. Hopefully the slide in soybeans will have run its course for now. They have seen a 50 cent decline, with soymeal trading lower for 8 sessions.

WHEAT: Planting progress for Spring Wheat was at 97% vs. 99% last year, and a 5 yeaer average of 94%.  Weather reports out of Ukraine and Russia are providing some support to the wheat market.  There has been no substantial rains since April in Ukraine, with none forecasted for the next 7 days.  They estimate the reduction of wheat production to be 15-30% below previous estimates. The global weather situation will find the wheat market subject to forecast updates.

Concerns over the G7 meeting in Quebec between world leaders are adding to the negative tone seen in these markets, especially the soybean market.  The June crop report is due out next Tuesday, the 12th.  Most analysts do not see the USDA deviating too far from their initial May estimates for new crop carryout totals.