February 10 2015
Grain Marketing Specialist
USDA Supply/Demand report today @ 11am
Corn: 1-2 Lower
The corn market traded higher yesterday on weakness in the US$ and strength in crude oil. Lack of country movement along with fund positions ahead of the USDA report also help spur the markets. March closed up 5 ½ cents at $3.91 ¼, closing just shy of 50 day MA of $3.93. July closed up 5 ¼ cents at $4.06 ¾ and December closed up 4 ½ cents at $4.21 ¼. Corn was lower most of the overnight session as we wait to see USDA numbers. Weekly export inspections were reported at 27.6 million bushels, at the low end of estimates but above last week’s 26.04 million bushels. USDA may raise the carryout in the report to around 1.88bb, but other than that no major changes are in store.
Soybeans: 2-3 lower
The soybean market traded higher on demand for beans and a weaker US$. Smaller estimates for Brazilian soybean production helped support soybeans as well. March closed up 5 cents at $9.78 ½, July closed up 5 ¼ cents at $9.90 ¾ and November closed up 4 ½ cents at $9.64 ½. Soybeans saw both sides of the market until about midnight and has been lower since then. Weekly export inspections were came in at 54.6 million bushels, near the high end of estimates, but below last week at 62.5 million bushels. Minor changes for soybeans are expected in tomorrow’s USDA report. There are ideas that we could see a slight increase in soybean exports. We did have a sale to China for 120k tones. SA weather conditions are expected to be mostly favorable this week. Much of the dry areas were said to have gotten moisture over the weekend and should see additional moisture this week.
Wheat: 3-5 Lower
The wheat market traded lower for most of the day on lack of demand, despite weakness in the US$. Prices did turn positive by the close (for KC and Chicago markets anyway.) Mpls bounced off its lows but failed to close in positive territory. The Mpls March closed down 1 cent at $5.76 but was above 20 day M of 5.74. KC March close up 1 ¾ cents at $5.63 ½ and Chicago March closed up 2 ¾ cents at $5.29 ¾. Pretty much unchanged on the overnight. Weekly export inspections were reported at 14.6 million bushels, near the high end of estimates but below last week at 15.3 million bushels. Spring wheat represented 5.5 million bushels of the total inspections figure. Expectations are that the USDA will make a small increase in US ending stocks and a small reduction to world ending stocks in tomorrow’s report.