December 8, 2015
Matt Erickson
Grain Marketing Specialist

Winter market base builder deadline is this Friday, December 11th. Be sure to contact your Grain Marketing Specialist to get enrolled today!

USDA WASDE report is to be released this Wednesday, December 9th

CORN- Up 1
Corn finished down on Monday mostly due to a weaker complex with a firmer dollar and energy prices trending lower. On a positive note China bought a record 32.6 mln gallons of U.S. ethanol in October. In world news the U.S. was a dime higher than Argentina last week in the export market. Argentina’s new President is set to take office this Thursday, which may create some volatility in the marketplace due to the possible ridding of the nation’s export tax. Export inspections released on Monday were poor coming in at 19.4 mln bushels. This is 17 mln bushels below the needed amount to reach the USDA forecast. Nearby support for March 16 can be found at $3.6775 with resistance showing up at the 50 day moving average of $3.8475.

The bean rally came to a screeching halt as the trade took 24 cents off of the of 66 cent futures rally that started back on November 23rd. Technically a poor close on beans today as we experienced a key reversal lower and are approaching the 50 day moving average on the downside. Weekly export inspections showed 63.2 mln bushels shipped last week, which was the smallest in 8 weeks but ahead of the 23.7 mln bushels needed weekly to reach the USDA forecast. Brazil had a favorable weather weekend as high production areas received rainfall with more forecasted later in the week. Popular target levels for November 2016 beans look to be in the $9.25-$9.30 futures level which would be close to $8.50 cash beans next fall. Nearby support for January futures can be found at $8.77 with resistance showing up at $8.84. Below is a day chart for January 16 beans…

WHEAT- Minneapolis Down 2, Kansas City Down 2
Weekly export inspections were poor on Monday coming in at 8.3 mln bushels. This is below the needed 14.9 mln bushels to reach the USDA forecast. The average carryout guess for Wednesday’s USDA report is 918 mln bushels. This would be 7 mln bushels higher than the last USDA report. The general feeling of the domestic winter wheat crop is favorable with decent moisture late fall/early winter. Nearby support for Minneapolis March futures is found at $5.0525 with resistance at $5.24. Nearby support for Kansas City futures is found at $4.6375 with resistance at $4.865.