Like Lemmigs off a Cliff #soybeans

Today’s ag market meltdown led by Brazilian political issues will hopefully be looked back on as a black swan event. The event itself has nothing to do with basic fundamentals and one should expect that it offers buyers an opportunity to get coverage.

July Soybeans down nearly 30 cents are extremely oversold and trading just above support of 944. Producers should not sell this drop.

Nov Soybeans are now 20 on the day and like the July contract is very oversold. First support is 940. We have risk to 907 and then 870 but I do not think we will trade that low until the crop is planted and in good growing conditions. I would not expect to see the lower range trade until at least the pod-set period.

July corn is oversold. Considering that USDA narrowed old crop stocks a bit I believe support at 356 will hold for now. Target 374 for additional sales.

Dec corn support at 382 is holding. We are trading a range between 382 and 399. I think you can expect to sell the higher end of that range until pollination time. As planting progress is coming to an end, the trade will quickly turn to pollination season weather forecasts. Seasonally time is on our side.

July wheat is testing the bottom end of its trading range at 420 and is very oversold. I continue to maintain an attitude of waiting to see what values are offered at harvest time in order to make additional sales. Current stocks, while tightening, and futures spreads (wide) will not be conducive to attractive storage rates at harvest time therefor producers should prepare themselves for selling off the combine and perhaps adding some sort of price protection.