Nov 11th 2014
Grain Marketing Specialist
Today is Veterans Day please take a moment to thank those men and women for everything they do for us.
Corn: As of 7:45- unchanged
Export inspections yesterday at 20.4mb and USDA did announce a sale of 130tmt to Mexico but ultimately USDA crop production report was the big news of the day. To the surprise of most USDA pulled back both yield and production to 173.4 vs. Oct of 174.2 and production to 14.407 vs. Oct of 14.475. This was a surprise to most as big crop tend to get bigger. While US stocks declines global stocks increased nearly 1 mmt as the EU, FSU and Mexico production increased. Harvest progress in line with expectations at 80% complete. Technically this market looks range bound for the moment with support at 3.59 and resistance at 3.81.
Soybeans: As of 7:45- 3 higher
Soybeans shot higher briefly after the release of the report before settling 11 lower for the day. USDA raised both yield and production to 47.5 bpa and 3.958 bb but left ending unchanged at 450. This was done by raising crush by 10 and exports by 20 to absorb the increase in production. World stocks down slightly but still a large 90.28. Harvest progress in line with expectations and the 5 yr average at 90% complete. Export s at 91.2. Technically yesterday we came awfully close to a double top and 2 of my 3 indicators are now bearish.
Wheat: As of 7:45- spring 1 higher, winter 1 lower
USDA lowered ending stocks to 644 while most expected an increase. This was done primarily by decreasing both spring wheat and durum. Minneapolis wheat in turn was the leader yesterday settling 8 higher. However world stocks increased .30 to 192.9 on EU increases. Winter wheat conditions at 60% g/e, planting at 93% complete and emergence at 83%.