October 23, 2014
Grain Marketing Specialist
Weekly export sales to be released this morning
CORN – Unchanged
Corn reached as high as 3.61 Dec futures on Wednesday but closed 8 cents below that mark. Ethanol production for the week was shown at 896,000bpd, which was up from last week. Overall ethanol stocks were shown down 416,000 barrels from last week, this supported ethanol futures during Wednesday’s session. Domestic consumption should remain solid this upcoming year between ethanol and feed use but it will be interesting to see if corn exports can perform as well as the beans with a near record strong U.S. dollar. Technically, we did trade through resistance of $3.5825 on Wednesday but still managed to close below that level and above support found at $3.34. Below is a look at weekly ethanol stocks with imports highlighted in red.
SOYBEANS – Up 3
Can the beans continue the excellent export pace? Stay tuned to this morning’s export sales report to find out. Crush margins remain very good, with end users still looking for ownership to lock in bushels and margins past spot delivery. The USDA did announce another sale on Wednesday of 419tmt to China and 113tmt to unknown. Current projections for Brazil’s bean crop this year range anywhere from 89mmt to 94mmt as planters continue to roll between rains in Brazil. Nearby support is at $9.04SX14 with resistance showing at $9.86 SX14.
WHEAT – Kansas City Down 1, Minneapolis Up 1
Winter wheat planting looks to be in line with 5 year averages as the weather forecast looks favorable. Australia is beginning to see rain in some areas where dryness was a concern. In export news, Japan bought 109tmt in the overnight. 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.