Grain Markets Commentary
How much more down?
The corn, soybean and wheat futures continue to back pedal as selling momentum increases. July corn broke through support just above 6.00 and has now filled the chart gap from last summer at 5.95 ¼. New crops continue to move lower as well. December corn has put out new lows this week and November soybeans are still 13 cents above the March lows of 12.47 ¼. Export demand concerns and better seeding weather next week are bringing pressure. There is no real risk premium left in the new crop markets and we will need to see a weather issue real or forecasted to get a serious move higher. We could see a technical bounce if sellers get weary in the short term. We had another corn export cancellation out of China for 233k tons. We will have to see if enough negative news has been priced in and we can get a little bounce. For today, we will watch 5.92 & 13.97 for support and 6.12 & 14.30 as resistance.