Are Soybeans the new Wheat?

July corn has reached all of our upside targets as of today. Farmers should continue to sell this market strength. A correction lower is guaranteed.

Dec corn, on the other hand, does have upside potential to the old contract high at 420. Farmers should make some sales here and target 420 for additional sales. Farmers with grain bins should use a hedge to arrive contract and talk to their MAC merchandiser about how to manage futures spreads into 2018.

Good news for corn price is bad news for soybean prices and considering a good percentage of the soybean crop has just been planted or is still in the bag, it is too early to kill off the soybean crop and be bullish soybeans. Stochastics are mid-range meaning that from this indicator’s view there is still upside potential for soybean price but will last only as long as the heat and dryness stay in the forecast. Look for a correction lower with potential for a leg higher after the break. Farmers should use these price spikes to price old crop soybeans.

November soybeans should be viewed through bearish eyes the entire season unless we actually see crop damage. It is too early to damage the crop now. The volatility in soybean price, if any, will come much later in the season. For now, farmers needing coverage should sell new crop soybeans.

As a matter of fact, with the volume of acres of soybeans being planted they should replace wheat as the dog of the market in the coming weeks.

Wheat has finally sparked my interest. We are getting our usual July rally early therefor farmers should sell wheat if July futures trade 457 and then 478. Consider selling July 2018 wheat at 530. I anticipate making the recommendation to sell all 2017 wheat at harvest time unless you have on farm storage space and the willingness to store wheat for a year.