Have Grains Decoupled From Crude?
Presented by Heartland Investor Capital Management Inc. CTA
Corn:
Support continues to hold near 439-441.
Trade is focused on the June 30 acreage report.
A reduction of 1 million acres could tighten carryout significantly.
December corn could recover toward the 470-480 range.
China demand headlines remain a major wildcard.
Soybeans:
USDA announced a 372,000 MT soybean export sale.
Market speculation continues that China is the buyer.
November beans held the 200-day moving average.
Upside target remains near $11.70.
Larger soybean acreage could pressure prices later this summer.
Wheat:
Third consecutive day of strong buying activity.
Heavy rains threaten Soft Red Winter wheat quality in the eastern Corn Belt.
France, Germany, and Poland face increasing heat and dryness stress.
Australia drought concerns are growing as El Niño develops.
Global weather risks continue tightening wheat supply expectations.
U.S. Dollar:
Dollar was not a major driver of trade today.
Weather concerns dominated grain market action.
Export competitiveness remains supportive for demand.
Global buyers continue monitoring wheat availability.
Currency markets remained secondary to weather developments.
Weather Outlook:
Excessive rainfall persists from eastern Kansas through Ohio.
Disease and quality concerns are increasing for SRW wheat.
Europe remains hot and dry with little rain in sight.
Australia faces elevated drought risk under El Niño.
Northern Brazil could see soybean production challenges later this year.
Provided by:
Eugene Graner,
Heartland Investor Capitol Management, Inc., CTA
(A separate entity from Heartland Investor Services)
Past performance is not indicative of future results. The information contained in this report is intended for informational purposes only and is the opinion of the writer and may change at any time. This information was compiled from sources believed to be reliable to Heartland Investor Capital Management, Inc. but accuracy cannot be and is not guaranteed. There is no warranty, expressed or implied, in regards to this information for any particular purpose. There is SIGNIFICANT RISK of LOSS involved in trading futures and / or options on futures and may not be suitable for all investors. Investors should consider these RISKS and evaluate their suitability based on their financial conditions. No one should ever consider trading futures or options on futures with anything other than RISK CAPITAL. NO LIABILITY on the part of the author exists for any trading loss you may incur in the use of this information. The information contained in this newsletter is privileged, confidential and protected from disclosure. Any further disclosure or use, distribution, dissemination or copying of this message or any attachment is strictly prohibited. Provided by Heartland Investor Capital Management, Inc. a registered CTA with the NFA, of which Eugene Graner is principal. This entity is a separate legal entity from the Introducing Broker Heartland Investor Services.