September 5, 2014
Grain Marketing Specialist
StatsCan report and export sales to be released this AM
CORN – Up 1
The market continues to push lower as new contract lows have been created the last two trading sessions. Funds were sellers of 6,000 contracts Thursday, now estimated at 26,200 contracts short. Export sales continue to trickle in as the USDA announced a sale of 120tmt on Thursday to unknown. Globally, the United States corn is still not the cheapest corn in the world with Argentina and Brazil still at a discount. Ethanol production increased 9,000 barrels from last week, which increased total ethanol stocks by 400,000 barrels. Export sales this morning for new crop are expected to be anywhere from 22-30mln bushels. Technically, the next level of support for December corn can be found at $3.43 with resistance at $3.58.
SOYBEANS – Up 4
Soybeans struggled again on Tuesday with mostly new crop fundamentals being traded as nearby meal sale premiums at the processors fade away. November soybeans traded as low as $10.0125 on Thursday as we test the psychological $10 futures mark. Globally, the United States is still the cheapest place in the world to buy beans, but South America is still cheaper for meal. Funds were sellers of 8,000 contracts on Thursday, adding to their already short position. November 15 futures still look to be a good hedge for 2015 beans as futures hang around the $10.25+ level. Below is a look at the day chart for 2014 November beans.
WHEAT – Kansas City Up 5, Minneapolis Up 5
The world marketplace seems to have plenty of cheap wheat around as the U.S. dollar remains strong and U.S. weekly export sales remain weak. Rains have slowed harvest progress in North Dakota the last couple days but the extended forecast looks dry to help producers finish up with harvest. Australia reported some potential frost damage on Thursday, which is helping to support the Kansas City market.