Ag Futures Lower into USDA Report

July corn is very over-sold but there is no sign of a turn around. I would expect to text support at 363. The managed money position will direct trade into the June 30th Stocks Report.

Dec corn has broken most short-term support levels and looks to test 382 with downside risk to 360. This contract is very oversold and would find buying interest on threatening weather forecasts but will likely trade sideways until after the June 30th report.

July soybeans once again attempted and failed to close above 944. This will be an important resistance point and will likely be tested again this summer. A close above 944 if coupled with a fundamental reason for soybeans to trade higher, i.e., supply-side issues, would open-up significant upside price potential. In the unlikely event that there are no supply-side issues to trade for the balance of the summer, the July contract has risk to 885.

November soybeans have broken short term support and may test next support of 907. I would expect for that value to be tested going into the June 30th report as the trade anticipates a significant adjustment higher in seeded acres compared to the number released in the March 31st Planting Intentions report.

July wheat made a significant move higher this week allowing us to hedge some of the 2017 crop. The contract reached over-bought conditions and abruptly turned lower and now suggests an additional weakness. Support is 450 then 444. I would expect to see continued firmness in this market as the market comes to grips with the small 2017 crop size. Any bullishness regarding the small 2017 crop size is tempered by the massive supply that remains on hand.