May corn unchanged at $3.9175
May beans up 2 ½ at $10.5125
The DOW is up
USD is stronger
Crude oil up $.48 at $61.19
Corn prices are steady this morning and bulls are happy to see the market post highs yesterday not seen since early-August of last year. Producers are finally getting a bit of a reprieve as new-crop DEC18 prices push north of $4.10 per bushel and less than 20 cents from the all-time contract high. Technically, the corn market is still battling the key weekly highs at $3.94 ½ ahead of the March expiration. A close over that level would set up a further bull swing with targets at $4.16. Look for buying against the $3.88 to $3.86 area. Risk a close under the $3.80 level. December is also challenging last week’s high at the $4.10 area. A close over that level would trigger another bull swing here as well. Look for support at the $4.06 level.
Soybean prices remain in a range near their recent highs as traders wait to see the extent of weather damage in Argentina and how much Argentine demand Brazil will be able to pick up and more importantly be able to service? The trade also seems to be waiting to see how or if the Chinese will take retaliatory action over U.S. taxes on steel and aluminum imports. With soy prices having rallied aggressively to the upside as of late, none of the bulls want to get out over the tips of their skis, so they are comfortable circling the wagons here for a moment and taking a slightly more defensive approach. New-crop NOV18 prices have essentially traded between $10.25 and $10.50 per bushel since late-February. The old-crop JUL18 contract has traded between $10.40 and $10.90 per bushel since February 21st.
On Monday, U.S. farmers suing Syngenta Ag over its decision to commercialize a genetically modified GMO strain of corn before China approved importing it sought court approval for a record $1.51 billion settlement. The deal covers U.S. corn producers, grain handling facilities and ethanol plants nationwide that sold corn priced after Sept. 15, 2013. Lawyers for the plaintiffs said they believe this deal would be the largest agricultural class action settlement in U.S. history. In addition to the nationwide class of farmers, several state class suits went to trial. One resulted in a $217.7 million for more than 7,000 Kansas farmers in June. (Source: Reuters)