March 21, 2016
Matt Erickson
Grain Marketing Specialist

Join us in the “Quest for Higher Yields” this Thursday, March 24th, featuring Fred Below, Professor of Plant Physiology at the University of Illinois! Fred will share his strategy of feeding the plant, not the acre. One lucky winner will go home with a UAV at the event, but to win you must be pre-registered by March 22nd and present to win! The event will go from 10 AM – 12 PM including lunch at the Wheat Growers Innovation Center at Bath.

CORN- Down 1
Corn had its second positive gains week in a row as we are now 13 cents off the low set back in the end of February. The funds are still carrying a lengthy short position of 227,000 contracts as of mid-last week. Informa acreage released on Friday pegged corn at 89.5 mln acres, which is just shy of the current USDA forecast. Corn exports over the past month have been a bright spot as we have been averaging 44 mln bushels of new sales per week. Technically support for May futures can be found at the gap created early last week at $3.655 with resistance found at 3.72 K16. December futures support can be found at $3.835 with resistance at $3.90.

Beans have been the leader over the past month as we are now 41 cents above the low set back on February 29th. Outside factors seem to be pushing beans as much as anything with the dollar dipping for the week, the Fed freezing interest rates and oil peaking above $40 mid-last week. Fundamentals still remain large with growing stocks next year if USDA’s yield and acreage prove to be true. The funds have grown their short position over the past month, now at 115,000 contracts. Technically, May futures are showing resistance at $9.0475 with support found at $8.915 on the 10 day moving average. Below is a day chart of May futures for beans.

WHEAT- Minneapolis Up 4, Kansas City Up 6
Minneapolis futures were off 6 cents last week while nearby Kansas City futures were off 13.5 cents through Friday’s close. Minneapolis futures seemed to have found a short term high on March 15th at $5.235 while Kansas City found a high on the same day at $4.9025. U.S. winter wheat weather seems to have improved as the trade takes a little risk premium out of the market although some weekend temps in Kansas were below freezing. Funds remain short 115,000 contracts in Chicago and 36,500 contracts short in Kansas City.