January 8, 2016
Grain Marketing Specialist
Crop Production, Grain Stocks, and USDA Supply/Demand reports out next Tuesday, January 12th. Contact your local Grain Marketing Specialist to get targets in before the report.
Corn: Up 1
March corn made a new contract low yesterday at 3.48 ½. Export sales out yesterday are 25% behind last year’s pace and 19% behind the pace needed to meet the USDA estimate. South Africa is probably going to be buying corn as they have seen the worst drought in over 20 years. Imports could reach 2.5 mmt.
Soybeans: Up 3
Brazil production estimates at 101.1mmt, up 500tmt from previous estimate. Argentina is now 92% planted. Outside markets are still weighing on grains. Chinese stock markets traded for 29 minutes on Wednesday night before it was halted by the government for the second time this week. Crude Oil makes 11 year lows on Thursday at $32.10 a barrel.
Wheat: MW unchanged, KC Up 2
Argentina’s wheat crop is 87% harvested and is expected to produce 10.9 mmt of wheat in 2016 according to their deputy minister of agriculture. India is in their second straight year of drought, but due to the phytosanitary standards put forward by India the only country that can send wheat their way is Australia but does not have the ability to satisfy a 6 mmt call. Below is a map of India’s current drought conditions.