Soybeans: The soybeans will most likely be needing some help from weather if we are going to see sustained rallies. That being said, soybeans are over 20 cents higher on todays trading session (6/8/22) and have now reached contract highs for the July contract. Soybeans closed sharply higher on Tuesday due mainly to the disappointing planting progress numbers from Monday. Traders were looking for 80% complete, but the report listed 78% of the crop has been planted. North Dakota was only at 41% which is their slowest pace on record. The crop already planted is off to a nice start, but traders are now growing concerned with the hot and dry weather moving into the southwest growing regions in the 6-14 day model. Unless weather continue to turn for the worse, the rallies shouldn’t be too extreme from here. Resistance for July comes in at 17.50 and 1760 with support at 17.08 and 16.80.
Corn: Like soybeans, corn traders are growing concerned with hot weather in the Southwest corn belt. While there is continued progress in the setting up ways to export grain from Ukraine, traders are also concerned that this will not take place quick enough. Some reports say there are 30 million tons of corn stored in Ukraine out of a possible 55 million tons, which will make this tough with an upcoming wheat harvest. Traders are also seeing ending stocks near 1.351 billion bushels for this months report. If so, this would be the lowest in 8 years, and this assumes normal weather. Daily momentum studies are trending higher and the next upside target area is around 7.80-7.85. Resistance comes in today at 7.73 and 7.83 with 7.42 as support below. If first support breaks, 7.23 becomes the next downside target.