January 6, 2015
Producer Marketing Manager
CORN: As of 7:45 – Up 2
March corn traded 10 higher yesterday and gained back what was lost on the New Years Eve selloff. We are seeing some positive gains in the overnight as we push above the 20 day moving average and back near the $4.10 area. Outside markets are something to note as the DOW dropped nearly 300 points yesterday (-1.5%) and Crude Oil is currently trading under $50/barrel for the first time in 5 years.
SOYBEANS: As of 7:45 – Up 8
Beans were off and running yesterday and much like corn, gained back ground that was lost on the last trading day of 2014 (see below). We did see China purchase 233,000 tons (approx 8.5 million bu) of US soybeans yesterday……the big question is was the purchase due to the price dip over the new year or are do they have some gaps to fill before S American beans are ready to load? Soybean inspections for last week were reported at 51.7 million bu. A strong number, but within trade expectations of 48-59.
WHEAT: As of 7:45 – Up 8
The wheat markets were a follower of corn and soybeans yesterday as MPLS March closed up 10.5 cents and KC March finished up 8 on the day. Export inspections were 13 million bushels compared to 9 million last week; expectations were 9-15 million so the number was adequate, but looking at the bigger picture, weekly shipments need to average nearly 20 million for the balance of the year to reach USDA targets.