Grant Christianson, President
Loren Refsland, Chief of Operations
Loren Swenson, Grain Merchandiser
Todd Stanghelle, Office Manager
Mary Schemel, Bookkeeper
SOY-COMPLEX: Beans are called slightly lower this morning on light profit taking heading into the weekend. Traders starting to note that some fund money is moving out of long soybean positions into wheat as the weather story becomes more important there. Meanwhile most of the bullish news has already been priced into the bean market for now. US planting progress is expected to be over 75% complete in Monday's report though many Midwest locations report that it will be closer to 90% done by Sunday night. Export news is quiet this morning with basis levels holding firm. Ocean freight rates for US Gulf to China holding at $47 a ton (Brazil to China running $46.50 a ton) while US PNW to China rates running $24.50. Barge freight values are steady after softening the middle of the week. IL spot is 320% while Mid-Miss at 340%. Look for a choppy trading session with July beans overnight low holding above the 50 day moving avg of $14.19 1/2.
CORN: Corn is called higher. Stronger wheat market and rising corn basis levels continue to be the driver of this rally. The resistance point for July wheat is now at 100 day MA of $6.36 1/2. Farmers are holding the last 15-20% of the crop very tightly and many report waiting for $6.75-$7.00 cash to the country. Traders are keeping eye on weather models and possible ridging for the Midwest next week. Most forecasters don't believe it will be a hard ridge but it will set the trend for hotter/drier pattern for the next 10 days. We get the 1st G/E rating next Monday and so far estimates on the G/E range from 65-75%. Export news is quiet with Brazilian corn running 55-60 cents/bu cheaper than US corn laid into Asia this summer. Cattle on Feed report is out this afternoon.
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