Grain Markets Commentary
Wheat bounce is pulling corn and soybeans off the lows
Corn and soybeans are bouncing off the overnight lows as wheat leads the way higher. Last week’s WASDE report gave a bullish outlook for US wheat as production has suffered resulting in an extremely high HRW abandonment rate due to the drought conditions in the SW Plains. The Kansas Wheat Tour starts this week and will give more insight into the struggles of the crop. New crop corn and soybean balance sheets were benchmarked at burdensome levels on Friday and sent both corn and soybean new crop contracts to multi-month lows. This is a benchmark, and we will need ideal weather to achieve this production. It can certainly happen, but it is far from in the bin. Turkey’s presidential election is likely moving to a runoff on May 28th and if Erdogan were to lose it would make it harder to keep the Black Sea grain deal intact. We will have to see if this is a short term bottom or just an overnight bounce. For today, we will watch 5.80 & 13.85 for support and 5.99 & 14.10 as resistance.