October 22, 2014
Matt Erickson
Grain Marketing Specialist

Looking for potential target opportunities for deferred months on the bid sheet? We now have $3.10 cash corn and around $9 cash beans for some delivery periods

CORN – Up 2
The funds were buyers of 6,000 contracts on Tuesday as the market rallied off of Monday night’s crop progress report, which showed national harvest pace behind average at 31% complete. Ethanol margins continue to stay positive but not as strong as the past couple quarters. In International news, Taiwan issued a tender today to purchase up to 60,000 tonnes of corn from multiple countries. Technically, we did bounce off of nearby resistance at $3.5825 CZ14 on Tuesday while we still look for support at $3.34. Below is a look at the trading range over the last couple weeks, we are currently against the top side of the channel.

Beans led the way on Tuesday with the funds stepping in and buying 7000 contracts during the day session. Harvest delays in the U.S. coupled with planting delays due to precipitation in parts of Brazil helped fuel the rally. Bean yields continue to be good where harvest progress has been made. Beans look to be wrapped up in the Western Corn Belt with plenty of progress to be made in the east over the next week. Currently the USDA has the national yield at 47.4 bpa, will this eventually be revised up again?? Nearby support is at $9.04SX14 with resistance showing at $9.86 SX14.

WHEAT – Kansas City Up 3, Minneapolis Up 4
Wheat looks to be slowly finding a trading range after being up for most of October. World stocks continue to be ample with winter wheat seedings trending right alongside the five year average. Nearby support for Minneapolis December futures looks to be found at $5.52 with resistance at $5.83. In winter wheat, Kansas City December futures support shows up at $5.90 with resistance at $6.15.