The second week of June brought plenty of data for commodity traders to sort through. The major report on the week was the WASDE on Thursday. Now that it is out traders seemed to shift their focus back to growing season fundamentals, like hot and dry conditions.
Kent Beadle with CHS Hedging was glad to see corn fight through the week to only see slight losses. “Especially given the sell off in the energy market corn was resilient to only lose 1 1/4 cents on the July contract.” Beadle said. Spreads and seasonal patterns are also starting to set up just prior to the official start to summer. Wheat futures are feeling harvest pressure. The latest crop progress report shows that winter wheat harvest is right on pace with the 5 year average.
Another positive to the trade this week was the continued buys of soybeans by China and unknown destinations. Beadle believes the buys may last through the end of the year before China switches back to South American sources.
You can hear all of Beadles comments on the markets and how it applies to marketing plans. here: