April 7, 2016
Grain Marketing Specialist
Corn: steady – 1 higher
Corn is trying to remain strong, but is backing off at the close of the overnight session. Ethanol numbers released, yesterday, showed a 1.6% drop in production from 992k barrels to 976k barrels. Total ethanol stocks, for the week ending April 1, came in at 22.2 mln barrels vs 23 mln last week. Export sales numbers released showed 44.1 million bushels. This number did exceed the needed 40 million bushels to keep on track with USDA projections, but total sales for the year, 703.5 million bushels, are 18% behind last year’s 853.9 million bushels at this time. Support is at $3.57 May futures, and $3.70 Dec futures.
Soybeans: 1 higher
Soybeans moving higher this morning on some decent export sales numbers. Export sales were reported at 15.5 million bushels. Total sales for the year are at 1.633 billion bushels. We are 8% behind last year’s 1.771 billion bushels at this time. Brazil’s official crop agency cut their SB total production numbers from 101 million metric tons to 99 million metric tons, but this is still larger than the 96.2 million metric tons that were produced in 2014-15. Wet weather in Argentina has slowed harvest, but it is expected to pick back up in the next 10 days. Brazil keeps cutting soybeans and loading them out. Support is around $9.00 for the May contract, and $9.15 for the November contract.
Wheat: 1 – 3 lower
Vegetation maps, out of the Kansas State University, show a slight stress on winter wheat fields in the western Plains. Overall winter wheat is looking goods, with potential to produce 1.4 billion bushels. That number, coupled with spring wheat and durum, has traders thinking there will be enough wheat to go around. Weather maps show moisture potentially bringing some relief to the southern Plains. Export sales, reported, were very weak coming in at 3.7 million bushels. Total sales reported for the year are at 703.5 million bushels. That is 18% behind the 853.6 million bushels this same week last year.