February 12 2015
Grain Marketing Specialist
Corn: 2 to 5 Higher
The corn market traded lower on world supplies, weaker crude oil and a strong US$. Talk of Ukraine and SA corn exports helped put pressure on corn prices... March closed down at $3.85, July closed down 2 at $4.01 and December closed down 3 cents at $4.15. All nearby months for corn traded lower to nearly unchanged on the overnight. USDA baseline report suggested US planted acres for 2015/16 at 88.0 million acres, production at 13.445 billion bushels and ending stocks to 1.733 billion bushels. Weekly ethanol production saw an uptick, up 13,000 barrels/day. Yesterday’s USDA ethanol stocks also increased to 21.1million barrels, highest since June 2012. Corn open interest was up 10,400 yesterday...large spec is long an estimated 65k. March Corn hangs around $3.85ish with $3.93 resistance and $3.80 ½ support.
Soybeans: 2-3 Higher
The soybean market traded higher on spread activity, and tight meal supplies. Cash markets firm as farmers remain unwilling sellers at current cash levels. March beans closed up 8 at $9.77 ¾, July closed up 6 at $9.85 and November closed up 6 at $9.59. The support spilled over into the overnight market as most contract months were 2 higher or better. Growing conditions are decent in SA as Brazil continues to get rains... How much will that delay harvest?? USDA’s baseline acre report suggests US 2015-16 planted soybean acres at 84.0 million, total production at 3.82 billion bushels and ending stocks at 519 million bushels Bean open interest was down 17,000 contracts yesterday. SH approaches resistance of $9.85
Wheat market traded higher on short covering and lack of farmer selling. Cash markets are mostly steady. Mpls March closed up 6 at $5.76, KC March closed up 5 at $5.59 and Chicago March closed up 4 at $5.25. The overnight markets were mostly mixed to choppy. 10-year USDA baseline numbers suggest 2015-16all wheat at 56.0 planted acres, total production at 2.155 billion bushels and ending stocks at 700 million bushels. Cold temps in winter wheat growing areas and unrest in the Ukraine remains in the news to keep the bulls concerned.