Afternoon Comments 6/19/14
Thursday, June 19, 2014, 3:06 PM
Submitted by: Joel Pudenz
Stronger closes today for grains as corn closes 8 to 9 cents higher, beans 11 to 14 cents higher, and wheat 6 cents higher. Fundamentally, soybeans were propped by strong export sales numbers this morning – being near the high side of expectations, and still positive. Continued short covering from the last few days also supported bean prices. The quarterly stocks report due at the end of June will provide some further clarity on our current carryout situation – how tight on beans are we? Some speculate much lower numbers than the USDA projects.
Short covering and growing concerns of excess moisture helped corn close 8 to 9 cents higher. The market mostly disregarded smaller-than-expected export sales numbers this morning. Similar to beans, some feel the quarterly stocks report may be tighter than expected. Our extended forecasts are near average, which will weigh on rallies (mostly non-threatening, 8-14 day outlook appears to be dryer than average).
Have a good night!