May 11, 2016
Grain Marketing Specialist
Corn: 2-5 Higher
Corn was just along for the ride yesterday, as they were happy to settle up 12 from strength from the Soy complex. USDA cut 15/16 end stocks for corn from 1.862 to 1.803. They also cut 16/17 stock from 2.569 to 2.153 BB. Look for the corn market to digest yesterday report and follow beans were ever they go possibly.
Soybeans: 5-10 Higher
The big mover after yesterday’s report. Most market were briefly up the limit then settled back down but near those limit highs. With most markets closing up 57. We did see that strength on the overnight session trading slightly higher at times on a weaker dollar. Most of the strength came when USDA released they cut 16/17 End Stocks 131mb from 436 to 305. Which was way below the estimate of 412. 15/16 stocks were cut 45mb to 400 from 445. Meal also had a wild ride settling up the limit, so they would have expanded limits today. With this kind of volatility in the market is why it is important to have working targets in place to capture the big moves..
Wheat: 1-3 Lower
Without the support from corn and beans yesterday, wheat would have settled in the red. But it still managed to settle positive with KC up 2 and Minny up 3. We say less aggressive moves with wheat but still showed that there is still an ample amount of wheat in the world. Both 15/16 and 16/17 stocks were increased. Also with good growing weather in main wheat states, and a decent looing crop wheat may continue to struggle without support form the outside.