6/14/2024

Grains were negative in overnight trade and weakness continued to build throughout the day. Corn gave us a very brief look at some 1 cent higher trade this morning before flipping back to the red. Corn basis and spreads had firmed over the past two weeks following a lack of engagement by the farmer, with the July:September spread even tightening within 2 cents on Wednesday. That same spread has widened back out to close at 6'4 cents today. Action in the corn spreads the past two days suggest that our quick, one-week rally was all that was needed to get grain moving off farms again. We had a nice set up on the corn charts that would have allowed us to make a run at May highs but with today's downturn, corn futures will need some help from weather and the USDA to get some momentum. For now, we will likely go back to grinding sideways until the June 28 report. Early harvest for Brazil corn has also started with reports of "better than expected" yields. If verified, Brazil will easily undercut U.S. corn for export business and it will make it tough for any new type of new crop corn export program tough to materialize.

Negative look for soybeans on the charts and will need a decision on direction soon.