February 4, 2015
Assistant Grain Merchandiser
Corn as of 7:45-down 2
US Dollar was down and Crude oil was up yesterday, helping the grains (chart below). March corn traded through the 100 day moving average which spurred on short covering. Funds bought 25,000 contracts yesterday. March ethanol futures are trading at a discount to unleaded gasoline as ethanol supplies increase to 3 year highs.
Soybeans as of 7:45-down 6
Funds were net buyers of 10,000 contracts covering their short positions. China pricing was also thought to be part of the rally. USDA Foreign Ag Service said Brazilian soybean crop dropped to 93 MMT, was at 95.5 MMT in its last report. Thunderstorms across parts of Brazil could slow harvest over the next week.
Wheat as of 7:45-MW-up 1, KC-up 2
Funds bought an estimated 7,000 contracts yesterday. Egypt bought 300 tmt from Romania and France yesterday and the US was 40 cents out of the market before the rally.
Russian crop estimates coming in at 50mmt vs. 59 LY on dry fall and winter. Some states released their monthly condition reports (below).