December 14, 2015
Grain Marketing Specialist
Bearish mood hangs over markets as trade remains firm. Federal Reserve to meet for two days. Interest rates are expected to be raised.
Last week USDA forecasted that we will be growing 90.5 million acres of corn, in 2016, while reducing the expected yield from 169.3 to 168.1. Argentina’s new president has said he has eliminated taxes on corn exports. Charts look to remain sideways as trade continues to wait for news. Support is around $3.75 with resistance at $3.82.
Soybeans backing off early gains in the overnight pressured by Argentina’s tax cut on exports and news, from Brazil, that soybean production and exports were up. USDA’s 2016 forecast, last week, stated that 82 million acres of soybeans will be planted in the US. This number is reduced from 83.2 last year. Yield expectations also were lowered to 46.7 versus 48.3 last year. Support is at $8.63.
Wheat: 1 - 2 lower
USDA’s 2016 forecast showed that wheat carryout will be up to 17 million bushels. Weather forecasts show above normal moisture for the Plains. Taiwan buys 3 million bushels of US wheat.