OptionEye Morning Market Macro Outlook - June 23rd

[ShelladyOptions]

Good morning.

Corn overnight was up 3, beans on fire up 16 and wheat up 4.

Weather and China the reasons that things are on the rise this morning. Too much rain may hurt corn ( I don't buy that ) but the market does and Chinese PMI numbers showing signs of a pick up over there have given beans a boost.

Gold is a little easier to $1313.97 down .88 cents. Oil is a tad weaker to $106.74 down .09 cents.

The 10 year is at 2.59% as we begin the week with strong Asian numbers.

Stocks are unchanged to slightly easier as European markets struggled all day.

The dollar is a little weaker to 80.31 down .06.

[nwiafmr]

"Too much rain may hurt corn (I don't buy that).."

There are 135 acres of waist high corn under that water......too much rain definitely hurt this corn....!

[nwiafmr]

Suppose to be a picture with my previous post.....will try again.....hope it stays here....?

[jennys_mn]

The radio station I listen to in the shop, KOWZ out of Mankato, was talking this afternoon about the flooding and that many of the fields under water were dying, or already dead, from being submerged in the water.  He was also talking about the fact that the corn didn't have to be submerged as long when the water was warm to kill it.  He said that many fields, or at least parts of fields, were going to be lost due to the flooding and excessive rainfall.  Believe it.  There will be acres lost to this.

I saw parts of fields of beans that were submerged today.  They look like those areas under  water are done.  They were black, and had lost most of their leaves.  I doubt they will come back either.  The market for corn and beans, given the conditions we have now, I feel is probably about right.  The wheat market is still wrong though, and it looks like that will take some time before we quit selling our wheat for fire sale prices.  Where should it be?  $1 - 2 dollars higher to cut off some of the demand now.  I really would prefer that we kept US wheat for us.

Jen

[lsc76cat]

Minor detail - KOWZ is based in Owatonna and is owned by the Linder Radio Group which owns a number of stations in southern MN and Ottumwa, IA.  They also own/operate the Linder Farm Network.

They are definately right about all the standing water and the damage done to a wide area.  Was on a flight from Orlando to Mpls Sunday and the last part of the flight was pretty ugly.  Alot of standing water turned the Land of 10,000 lakes into more like 30,000.  We've lost about 1/3 of our bean crop and about 10% of the corn crop.  Rotation put most of the corn on higher ground this year.

[jennys_mn]

Thanks Isc76 cat.  I think I knew that, guess I had Mankato on my mind when I was typing.  It's one of the few farm stations left across the country, I think.  I like their mix of music, and all the farm stuff they do, including the reports from the field.   But thanks for setting the record right.

Jen