December 8, 2014
Matt Erickson
Grain Marketing Specialist

Be sure to have your targets working in this volatile market!

CORN – Up 2
Corn exports are picking up as the dollar has backed off its recent highs and we are once again competitive in the world marketplace. Argentina planting pace looks to be on track at 53% planted, this time last year they were 52% complete with planting. Ethanol grind continues to be steady as idle plants fire up in this favorable margin environment. December 15 futures are perking up near recent highs of $4.32, may not be a bad spot to start scaling into for next year’s crop. Nearby support for March 15 futures is found at $3.84 with resistance showing up at $4.01. Below is a look at the December 15 day chart.

Beans rallied on Friday with news of a 240tmt sale to unknown. Exporters are still hungry for beans now versus later as cash inverses between January and February delivery start to appear. Bean exports the last couple weeks have been better than expected with 40 mln bushels reported in last week’s export sales report. The last USDA report had the carryout at 450 mln bushels and since that point we have seen a better than expected NOPA crush number and good weekly exports, may not be too surprising to see a smaller carryout number on Wednesday. Argentina soybean planting progress is seen at 60% complete versus 65% at this time last year.

WHEAT – Kansas City Down 4, Minneapolis Down 3
Wheat gained momentum on Friday from the strength in corn and beans with Russia’s export situation still unknown. Rains are expected to fall on most of the U.S. winter wheat areas over the next week. Russia is also forecasting snow and cold weather over the next week which should help their wheat production estimates. Minneapolis March futures pulled sharply off their highs last week but still rallied to finish up 6 for the week. World wheat fundamentals are still large, which should keep a cap on how high futures can rally in the short term.