February 20, 2015
Grain Marketing Specialist
Weekly export sales to be released this morning
CORN- Down 2
The market reacted positively to a lower corn acreage number from the USDA Ag outlook forum, reducing planted acres from 90.6 mln acres in 2014 to 89 mln acres in 2015. Ethanol stocks dropped 51,000 barrels on Thursday, which was the biggest weekly drop in two years. Ethanol grind was strong once again, up 3,000 barrels from last week at 964,000 barrels per day. Funds were active buyers on Thursday adding 5,500 contracts to their 65,500 contract long position. Nearby support for March futures is found at $3.81 with resistance at $3.91CH15. Below is a look at ethanol production and change from week to week.
SOYBEANS- Down 3
Beans were led higher on Thursday after the USDA Ag outlook forum pegged bean acres for 2015 at 83.5 mln acres, a little below last year’s acreage number of 83.7 mln acres. Beans were also pushed higher from strength in meal with nearby meal closing up $8.90. Weekly export sales this morning are estimated to show weekly bean sales anywhere from 14-20 mln bushels with 3.3 mln bushels needed weekly to reach the USDA estimate. Funds were active buyers Thursday purchasing 8,000 contracts, trimming the short position to 57,500 contracts. Nearby support for March futures is found at $9.93 with nearby resistance found at $10.17 SH15.
WHEAT- Minneapolis Unchanged, Kansas City Up 1
Egypt was a buyer of Romanian and French wheat after they did not buy U.S. wheat on Wednesday due to high prices. Funds sold 2,000 contracts adding to their 63,200 contract short position. Expected export sales this morning have wheat sales between 11-18 mln bushels, with only 9.2 mln bushels needed weekly to reach the USDA forecast. Nearby resistance for Minneapolis March wheat is found at $6.00 with support at $5.70 while nearby resistance for Kansas City March wheat is found at $5.82 with support at $5.33.