6/5/2024

Demand is routine and any threat to this year's crops currently perceived as minimal keeps us in a grind lower.  We did see some 5 higher corn and 10 higher soybeans trade for a brief while after the 8:30 re-open.  Corn is back down near 3-month lows meaning our "late planting" rally is officially priced out of the market but doesn't mean we can't make a run at something better than today's prices in the near future.  The farmer has been severely disengaged since mid-May and basis has reacted by firming.  We have some potential head and shoulders patterns on the charts we can use if trade can find somewhere close to bounce from.  We've basically erased May's trade from the charts in the first week of June.  New sell targets (these have been revised lower):  Fill cash corn at 460 July futures to close out on old crop sales (previously 477'0), new crop corn at $4.30 or Dec HTA's at 480'0 futures (previously 502'0). Fill cash soybeans at 1200 futures to close out old crop, new crop soybeans at $11.00 cash or 1188 futures.

Potential head and shoulders pattern we are looking for to give us some to sell cash grain against. Gaps are likely to remain unfilled on the charts.