DTN reports:
July corn and July soybean oil finished with small gains Friday, while all three wheats fell back to finish the week lower. The bullish surprise of the day came from the U.S. Labor Department’s report nonfarm payrolls increased by 2.5 million in May, much higher than the large declines expected.
Wheat:
Wheat trade was 6 to 11 cents lower on Friday with selling pressure on the dollar flattening out, and with trade heading into a harvest weekend. The plains look to trend warmer and drier to push the crop along this week with harvest starting to expand to the south, while European weather looks little changed. KC is at a 53-cent discount to Chicago on the July with steady action, while Minneapolis is back to a 3 cent premium. The July KC chart support is the 20-day at $4.58, with resistance the upper Bollinger Band at $4.80.
Corn:
Corn trade was 2 cents higher to close the week with trade holding the upper end of the recent range but lacking the spark to take out the overhead resistance levels so far. Ethanol margins remain stable with improvements in driving demand so far this week and energy strength on further OPEC cuts with unleaded up a nickel. Warmer drier weather for most is expected for the bulk of the week before cooling next week with the west staying dry. Basis has been mostly steady lately. On the July contract support is the 20-day at $3.20, and resistance the fresh high at $3.31 which is where the market closed on Friday.
Traders are asleep. People forget about how many products have some form of corn in them. Most hand sanitizers have 70 percent of ethanol as an ingredient. Many pet foods are still grain based for protein. The farmer is not going to move grain at these levels and is going to wait and see if the Chinese trade becomes bigger. This break will actually cause acreage to go down because the input costs have gone up and the prices have gone down significantly.