Bullish pressure persists in grains, soybeans

Corn: A forecast that offers most of the beneficial dryness combined with pressure from wheat helped to push the corn market lower today. While the forecast does not appear quite as good as was promised last week, it is still far better than what we have been seeing. Turning to the technicals, new crop corn still has room to move down to 653 1/2 before reaching even the first technical support. This means corn can stand a setback through this week due to an improved forecast and still not look bearish through the upcoming week…Ryan Ettner

Soybeans: No major fundamental change for beans on Monday. They had little reaction to the selloff in corn and wheat, finishing 3 3/4 lower for July and 5 lower in November. Tuesday starts a new month and there was talk today that we could see fund money buy these markets again. Beans are finding support right now even with the fundamental news being bearish. The USDA released crop progress today and beans are 51% planted, 71% a year ago, and 71% 5 year average. This could be supportive for the overnight session. The weather is going to be a big factor over the next few weeks, but outlooks have warm temps with minimal rain plugged in right now. That should have the planters out in the fields and give farmers time to get some work done…Steve Georgy

Wheat: Over the Memorial Day weekend, Russia gave the wheat market a bearish surprise. Russian Prime Minister, Vladimir Putin announced that after a 10-month absence, Russia would be back in the export market beginning July 1. At one time, Russia was the world’s third largest grain exporter, so this announcement is a big deal. There have been rumors that the lift of the export ban was about to happen for weeks now. What surprised the market was that there are no strings attached to the exports. There are no government controls on how much grain will be exported. This was the biggest surprise to the market. USDA estimates that Russia will export 10 million tonnes of wheat this year…Jim McCormick

Ryan Ettner is a registered commodities broker and grains analyst at Allendale, Inc. Steve Georgy is a Sr. Broker/Manager at Allendale, Inc. Jim McCormick is a Sr. Broker at Allendale, Inc. Allendale is registered with the CFTC and NFA and is a member of the NIBA. www.allendale-inc.com.

About the Author

Ryan Ettner is a registered commodities broker and grains analyst at Allendale, Inc. Steve Georgy is a Sr. Broker/Manager at Allendale, Inc. Jim McCormick is Senior Broker/Manager at Allendale, Inc. Allendale is registered with the CFTC and NFA and is a member of the NIBA. www.allendale-inc.com

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