Corn bulls get fed, but favorable news sets up fast fall

Grain markets look ahead to supply strain

Cornfield, corn Cornfield, corn

Corn: This entire week will likely be dominated by bulls seeing pictures posted on Twitter like those seen today of ears no larger than a pen. If we tour our own fields and that is what we see then we can expect a push to extreme highs. If walking into your own field results in anything better than what we are hearing this week then be ready to have coverage once this tour ends. Bulls are in full charge to start the week. Bears might have to wait until next week before getting aggressive selling once the tour ends…Ryan Ettner

Soybeans: Weather was a bit warmer and wetter with the model runs today and until we see more of the bean crop move towards maturity we could still see a reduction on yields. Currently 4% of the beans are dropping leaves which is the step before maturity. Until we see more beans move from the key pod setting state to leaf drop we still have a chance to damage the beans. Good demand and bullish weather should push us into new highs in the next few sessions…Cordon Sroka

Wheat:  Allendale is projecting that world wheat stocks to use will fall to 21.6% this year. This would be the third year in a row that the stocks to use number have fallen. Even with this drop it would still leave world’s stocks to use ratio at the fourth highest level in the past 10 years. Allendale believes that the wheat market will continue to chop around as the market tries to balance increased demand for wheat in feed rations and staying competitively priced on the world market The next big level of technical resistance for the December contract it at the $9.42 level…Jim McCormick

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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