May 13, 2016
Grain Marketing Specialist
Corn: Down 2-5
Corn surged higher yesterday as it found support from better than expected export sales. 4 out of the last 5 weeks’ corn sales have been over 1 million tons. Corn yesterday posted gains of 11 ½ higher. We trailed off on the overnight sessions as we slipped into the negative, with most months posting down around 2 ½. With the ratio favorable beans, and with acre movements to beans will the corn market try to pull some back or is it to late or just too wet in some areas to think about planting corn?
Soybeans: Down 3-8
More profit taken yesterday as the bean market could not hold its gains early in the morning session. They did try to settle higher by the end of the day but closed down 6. We may start to see a weaker tone to the market as we are starting to see acres move from corn to beans especially in the ECB due to wet conditions. Corn/Bean Ratio is still favorable to plant beans. Workers on the ports in Argentina are posed to strike again. That particular port handles about 80% of country grain export.
Wheat: Down 2-5
Wheat, like corn was supported by some strong export sales yesterday as we saw KC close up 7 and Minny up 3. We did lost some of those gains in the overnighter session. Wheat needs to keep posting strong numbers to meet USDA export numbers as we are lagging behind. It’s going to be close to meeting the expectation, but compared to the last few years we are way behind.