Late call on Chicago
CBOT soybean futures are called to start the session 8 to 10 cents higher. The combination of higher outside markets, supportive weather forecasts, bullish demand outlooks amid the lingering Argentina farmers' strike and the resurgence of speculative money flowing into the market are seen buoying prices, analysts added.
Benchmark Chicago Board of Trade July wheat is called to open 3 to 5 cents per bushel higher on spillover support from CBOT corn and soybeans, analysts said. Weather looks bullish for CBOT corn and soybeans amid concerns about slow planting and development of the row crops due to excessive moisture. "They want to run, and we're going to follow," a CBOT wheat trader said about corn and soybeans.
Chicago Board of Trade corn futures are expected to open 3 to 5 cents higher Friday on the momentum from Thursday's new highs and on support from crop concerns and outside markets, analysts said. July corn is at an all-time high, and prices have broken out of a trading range that had confined the market for two months. July had been trading between $5.80 and $6.20. An analyst said the new highs will encourage more buying. "With the weekend approaching, we could see a little profit-taking today, but all I think we'll do is temper gains," the analyst said.
Late call on Chicago
Corn 1-2c higher, beans up 5-10c, wheat up 3-5c.
Nothing new really in the marketplace. Still cold & wet in many parts of the US. The soy:corn ratio back to 2:1 which favours corn planting but how are they going to get it all in? At 10% done, as reported Monday, that's the third lowest since 1986.
At these prices & with these conditions I think I'd rather buy corn and short beans & wheat.
Chicago late call
Wheat is called to open 6 to 8 cents per bushel lower. Bears have solid downside technical momentum on their side in the wheat markets after recent setbacks, traders said. CBOT July wheat, which represents the new crop, is down more than $4.50 from its high last month and overnight fell to its lowest price since Jan. 14.
"Prices are still in a six-week-old downtrend on the daily bar chart," a technical analyst said.
Total weekly wheat export sales of 272,000 tons were nothing to get excited about either, traders said.
Soybean futures are called to start the session 4 to 6 cents higher.
Demand prospects linked to a possible resumption of an Argentina farmers' strike next week continues to support futures, and with prices holding above key technical levels, bullish psychology remains in the market, analysts said.
However, a firmer U.S. dollar index is seen limiting upside momentum, a CBOT floor trader said. Also rumours circulating that the Argentine government may possibly suspend the tax on exports that farm groups oppose will keep traders cautious.
Corn futures are expected to open 2-3 cents a bushel higher Thursday after prices bounced slightly in overnight trade following a lower pit close on Wednesday and as showers and storms move through the heart of the corn belt, analysts said.
Chicago late call
Wheat 6-8c lower. The US is starting to realise that it is far from the only shop in town on the wheat front and the solid downtrend looks set to continue.
"It seems farmers around the world responded to high prices in wheat by expanding wheat plantings, said Vic Lespinasse (specialist subject the bleeding obvious). Recent talk of strong production potential in the E.U. and China is bearish, he said. "
Cheers Vic for that incredible insight. It's the first we've heard of it, so we'll keep an eye out for increased production numbers now that you've given us the nod.
Beans up 3-5c. Tight supplies, Argy Bargy. Sadly, Vic had no little secrets to let us into on the soya market.
Corn down 2-3c. Something to do with overnight action, not that Vic has probably seen much of that himself mind. Vic has heard however that it's a bit wet in the midwest & suggests that we monitor the situation, so remember where you heard that one first, from good old Uncle Vic. Nudge, nudge, wink, wink.
Late call on Chicago
CBOT soybean futures are called to start the session 10 to 12 cents higher. July wheat, which represents the new crop, is called to open 1 to 2 cents per bushel lower. Corn is called 3 to 5 cents higher.
"It looks like the market overreacted to the downside Monday, and with the U.S. dollar lower and solid underlying demand, corn & soybean futures are poised to extended the higher overnight theme," a CBOT floor analyst said.
Meanwhile, rumors that the lack of progress in negotiations with the Argentine government and farmers could lead to a resumption of a farmers strike in Argentina next week are seen supporting futures as well, traders said.
Wheat has a lack of technical support after recent losses, traders said. CBOT July wheat needs to return above $8.95 to $8.96 in the next two trading days, or the market is likely to continue its technical sell-off, said Mike Zuzolo, analyst for Risk Management Commodities. "If we don't regain the $8.95 support level in the next two sessions, the downside is another 40-60 cents in July Chicago wheat," Zuzolo said in a note to clients.
Corn is seen steadier as a new round of showers currently over eastern Iowa, eastern Missouri and parts of Wisconsin are expected to keep producers out of the fields.
Chicago late call
Corn Dn 6-8c, Soy Dn 15-20c, Wheat Dn 8-12c.
The U.S. corn belt didn't receive the excessive rainfall expected over the weekend, and with warmer temperatures for the region forecast for the next week, farmers are expected to increase planting progress, grain analysts said.
In the big picture, planting concerns remain supportive, but in the short term, opportunistic planting outlooks for the next week or two and the absence of fresh fundamental news to feed market bulls should shake a few longs out of the market, a CBOT floor analyst said.
Speculators continue to hold large net long positions in the market, but without fresh supportive fundamental influences, traders are trimming some length amid the uncertainties of acreage and weather, analysts added.
The inability of futures breach overhead resistance in recent sessions is attracting light selling pressure as well, but the daily dose of bullish outside market influences continues to provide underlying strength, traders added.
