March 19, 2015
Grain Marketing Specialist
Weekly export sales to be released this morning
The Federal Reserve dropped the word “patient” from its guidance on interest rates and also scaled back the timeline until September for when we may see an interest rate hike. The news of this rallied the commodity complex as the dollar weakened into the close. Weekly ethanol production was up 3,000 barrels to 947,000 barrels per day, total ethanol stocks did decline 400k barrels for the week. In world news Ukraine’s planting pace is well behind, down about 400k hectares from last year. Nearby support for May corn was broken yesterday but still managed to close above the $3.70CK15 support level. Below is a day chart looking at May15 corn.
SOYBEANS- Up 1
There doesn’t seem to be a lot of bullish news out on beans but rather just short covering from the last few weeks of sessions where we have taken 65 cents out of May bean futures. South America’s export program is in full swing with ample shipments destined for China and U.S. weekly export inspections continuing to dwindle. China’s Ministry of Commerce believes they’ll see 2.93mmt of soybean imports in the month of March versus 2.57mmt of soybeans received in February. Nearby support for May beans is found at $9.535 with resistance at $9.975.
WHEAT- Minneapolis Up 3, Kansas City Up 3
A survey released on Wednesday showed projected planted spring wheat acres to be 13.4 mln acres versus 13.025 mln acres last year. Rains over parts of the Southern U.S. fell mid-week but still concerns remain for dry conditions in the Northern part of the country. Winter wheat concerns continue to circulate out of the Southern U.S. where winterkill fears continue to loom as we break dormancy.