January 8, 2015
Producer Marketing Manager
CORN: As of 7:45 – Steady
Ethanol production released yesterday was lower for the second week in a row. Production dropped from 972,000 barrels/day to 949,000 barrels/day. Implied gasoline demand was lower on the week as well, leading to a build of ethanol stocks in spite of the lower production number. Export sales out this morning were under trade estimates at 15.3 million bushels sold last week (24-31 was expected).
SOYBEANS: As of 7:45 – Up 4
March beans traded up to the $10.61 mark yesterday (we are testing that area again this morning) before settling unchanged at the close of trading. Continues to be a little weather premium built into the bean market as warm and dry forecast for Brazil for the next 10 days. Soybean export sales were decent at 33.5 million bushels, above trade guesses of 18-26.
WHEAT: As of 7:45 – MPLS Down 1, KC Down 3
Much like corn, the wheat markets had a touch day yesterday. Front month contracts closed 10-11 lower. The US Dollar continues to strengthen (see below), making our products more expensive in the world market. Speaking of that…..export sales were quite low at 5.5 million bushels this week, a majority of that was HRS. The expected range was 7-15.