December 11, 2014
Matt Erickson
Grain Marketing Specialist

Weekly export sales released this morning

CORN – Up 1
The USDA lowered the U.S. carryout 10mln bushels on Wednesday to now just below 2bln bushels. Most analysts had projected carryout to increase due to lack of exports but the USDA decided to raise food, seed and industrial use up by 10 mln bushels. World stocks were also increased .7mmt to 192.2mmt. In export news there was a new sale reported of 189,000 tons sold to unknown for the 2014/2015 marketing year. Ethanol grind continues to be strong producing a record 988,000bpd last week, which in turn increased ethanol stocks 500,000 barrels to 17.8 mln barrels. Nearby support for March futures can be found at $3.84 with resistance showing up at $4.01.

There was a lot of new information available in the marketplace yesterday with both the USDA and Conab reports being released. The USDA report was somewhat favorable, cutting the carryout number 40 mln bushels from 450 to 410 mln bushels. While the CONAB report showed a near 200 mln bushel increase in Brazil bean production from its last report, reflecting ample moisture over the last couple weeks. The export program still appears to be alive and well heading into the end of the year with bean exports not slowing down quite yet. Cash inverses still showing up after January delivery, which at that point bean values will more than likely be priced off of processor markets. Nearby support for January beans is found at the recent low of $9.8375.

WHEAT – Kansas City Down 5, Minneapolis Down 4
Wheat stocks were raised both domestically and globally on Wednesday adding negativity to the wheat market. U.S wheat imports were raised 10 mln bushels from the last USDA report. Most of the world wheat stock increase came from increased production in Canada. 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.