Technical Analysis 02/07/2020

Wheat July 2020.

Winter wheat trading added to Tuesday’s gains, while spring wheat pulled back some on Wednesday. SRW futures closed the day with 6 to 8 3/4 cent gains. KC wheat futures ended 2 1/2 to 7 cents higher. Strength in corn helped the winter wheats. MPLS spring wheat closed the day down by 2 to 3 1/2 cents. The 7-day QPF shows at least 2-3 inches of rain forecast over the next week for most of ND as well as parts of northern SD and western MN. Estimates ahead of tomorrow’s Export Sales report have wheat bookings ranging 250,000 to 600k MT. 

• Jul 20 CBOT Wheat closed at $4.98 3/4, up 8 3/4 cents,
• Jul 20 KCBT Wheat closed at $4.42 1/2, up 7 cents,
• Jul 20 MGEX Wheat closed at $5.07 1/4, down 2 cents.

Technical Indicators

Moving Averages

Corn July 2020.

The front month corn futures rally persisted through the Wednesday session. Prices were 8 to 10 1/4 cents stronger at the close. July futures were strong on the day with a 2.88% gain to $3.48 1/4. USDA’s monthly Grain Cruhsings report showed 299.93 mbu of corn was ground for ethanol in May. DDGS production in May was back up by 219k tons mo/mo to 1.234 million tons. EIA data from the week ending June 26 showed ethanol plants produced 900k barrels of ethanol per day on average. Average daily production increased by 7,000 bpd wk/wk. Ethanol stocks were reduced 870k barrels on the week to 20.164m bbls. That is the smallest stockpile since January 6 of 2017! Traders anticipate old crop corn bookings between 450,000 and 700,000 MT. New crop sales are estimated to be less than 200k MT.

• Jul 20 Corn closed at $3.48 1/4, up 9 3/4 cents,
• Sep 20 Corn closed at $3.50 1/2, up 9 cents,
• Dec 20 Corn closed at $3.60 1/2, up 10 cents,
• Mar 21 Corn closed at $3.71 1/2, up 10 1/4 cents.

Technical Indicators

Moving Averages

Soybeans July 2020.

Soybean futures closed the Wednesday session with gains of as much as 18 3/4 cents. Jan beans were up 2.12% on the day, but the other front months closed 9 1/2 to 17 1/4 cents higher. Soymeal futures closed with a $6.40/ton gain in July. July bean oil was up by 23 points at the close. USDA released May bean crush in their Fats and Oils report this afternoon at 179.533 mbu. The trade was looking for 180.7 mbu. That was down 3.84 mbu from April, even with an extra day, but was still a record for the month. Bean oil stocks on hand at the end of the month were 2.447b lbs. That was down 155m lbs from April, but still 428m lbs larger yr/yr. Trade is looking for old crop bean sales to range from 300k to 800k MT in tomorrow’s report. New crop sales are also estimated to range 300 to 800k MT. Soymeal export sales are estimated between 75,000 and 250k MT, with up to 50k MT of 2020/21 bookings. Traders estimate bean oil sales between 5,000 and 25,000 MT.

• Jul 20 Soybeans closed at $8.93 3/4, up 9 1/2 cents,
• Aug 20 Soybeans closed at $8.91 1/2, up 12 3/4 cents,
• Sep 20 Soybeans closed at $8.91 1/4, up 14 1/4 cents,
• Nov 20 Soybeans closed at $8.99, up 16 3/4 cents,
• Jul 20 Soybean Meal closed at $292.70, up $6.40
• Jul 20 Soybean Oil closed at $28.21, up $0.23.

Technical Indicators

Moving Averages

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