Planting delays and Kansas snow

May corn futures topped out at 370 just short of our sales target of 373. Faced with poor fundamentals corn producers sell this rally nevertheless. While we may certainly be faced with planting delays that could curtain corn production those events will have less of an effect on old crop corn.

Dec corn did achieve our sales target of 390 and topped out at 395 on Monday. Support is 383 then 375. Continue to watch closely the USDA planting progress reports. Once we achieve corn seedings of 50% or better the market should begin to take on a more bearish tone. We may reach that benchmark in the next report on May 8th.

May soybean futures did move higher after my last report and now look to break lower. Switching to the July contract, stochastics are pointing lower. Producers holding old crop soybeans should continue selling these rallies or be prepared to hold and speculate on a growing season weather problem.

Nov soybeans rallied and have been trading over the 20 day moving average on planting delays. Remember planting delays eventually is bearish soybeans. Advance sales on new crop soybeans here.

July wheat moved higher this week on the Kansas late spring snow storm. It is a selling opportunity for producers. The market is not convinced that the damage is severe as it has traded lower after Monday’s big day higher. Assessing late stage wheat crop damage is difficult and we will likely not know the extent of the damage until it is harvested. The market will likely trend sideways to higher into the Kansas harvest period. Producers should sell some here and wait.