December 10, 2014
Grain Marketing Specialist
USDA report this morning at 11AM
CORN – Up 1
A couple items to watch in today’s report for corn include carryout and yield. Average trade guess for carryout is 2.027 bln bushels, which is slightly higher than the USDA report in October due to smaller exports. Rumors continue to circulate on China imposing restrictions on imports of DDG’s which would be reflected negatively in ethanol margins. South America looks to be getting rain where they need it in parts of Brazil and Argentina for corn production. Nearby support for March futures can be found at $3.84 with resistance showing up at $4.01.
SOYBEANS – Up 2
Bean export inspections on Monday continue to keep momentum with beans. At this point we are still talking about big fundamentals on carryout, ranging from 400-455 mln bushels predicted in this morning’s report. The risk premium in the market is still evident as we have all of the South American bean growing season ahead of us. After this morning’s report we can count on talking a lot about weather in South America and production estimates from different firms. Bean volatility will more than likely continue to be the theme for beans with a lot of question marks around South American production and domestic production numbers. Below is a look at the SF15 day chart.
WHEAT – Kansas City Down 3, Minneapolis Down 2
Wheat struggled on Tuesday with fears of the USDA cutting exports in this morning’s report. Southern winter wheat areas continue to look probable for precipitation later in the week. The Russian export situation eased yesterday with news of the Prime minister of Russia denying the idea that his government is considering restricting exports. Minneapolis March futures look for resistance at $6.43 with support showing up at $6.04. Kansas City March futures look for resistance at $6.66 with support at $6.10.