March 18, 2016
Grain Marketing Specialist
Corn: 2-5 Better
Corn market had a decent open but was overcome by pressure from the wheat market on yesterday’s session. With early support from a weak US $ and also a little help from Beans. The overnight saw a pretty tight window as we saw a range of 1 ¼ cents. We are starting to see resistance around 3.72 and support at 3.66 ½. Looking at some weather models for some extended time frame, they show no major issue thus far. Our weekly export sales were larger than expected at 1.227mmt. As we are past midpoint of the month, we draw closer to the ever important March 31 planting intentions and stock report. Could we see 90 million acres or more. Start to think about targets if have not already!!!
Soybeans: 2-4 Better
Soy complex had a strong open yesterday but lost it steam around mid-morning. The Bean oil market was credited for the support as there are concerns with the world veggie oil market The overnight market ran into some resistance around 9.04 on the May contract. Still some political issues in Brazil that could have some effect on the market. Weekly export sales came in decent at 623.7tmt which was above the weekly pace. Loading delays at the ports in Brazil are a concern again. Around 70% of the boats in line have a destination to China.
With no relative fresh news and weather premium taken out of the equation, wheat market was under pressure for most of the day. KC took most of the abuse flowed by Chicago than Minny. Did not get any better on the overnight session as we were fractionally lower in KC and Chi, MWK was unchanged. KC has found support around the 20 Day MA at 4.68 ¼. MWK Export sales were poor, coming in at 212.9tmt way behind the pace.