September 7, 2016
Matt Erickson
Grain Marketing Specialist

Next USDA report is on Monday, September 12th

Looking for harvest contracting options? Contact your local Grain marketing specialist to go through all the contracts and options we currently have at Wheat Growers.

CORN (Up 1)
Export inspections came in above expectations at 57.8 mln bushels as we start the new marketing year on corn and beans. We will need around 41 mln bushels a week to reach the USDA forecast this year. CONAB trimmed their Brazil Safrinha corn crop to 41.1 MMT, which is down from the 54.5 MMT produced last year. China continues to sell their reserves as they plan to sell 8.2MMT corn on auction this week. Conditions for corn dropped 1% this week to 74% G/E and the U.S. corn crop is estimated at 18% mature, which is 1% ahead of last year. Nearby support for December futures is found at $3.18 Z16 with resistance showing up at $3.4425. Below is a look at the day chart for December corn..

Bean exports were shown above trade guesses at 45.3 mln bushels. We will need 37.4 mln bushels a week to reach the current USDA forecast. China was the largest buyer for the week at 19.3 mln bushels. China also plans to auction 600kMT of beans this week as they work state supplies down. Reports over the weekend show the Chinese government incentivizing producers in certain areas to rotate corn acres into bean acres for a monetary sum. Condition ratings remained the same at 73% G/E, which is 10% higher than at this point last year. The USDA estimates that 12% of beans are dropping leaves, which is right on pace with the 5 year average. Nearby support for November beans is found at $9.37 with resistance showing up at $9.705.

WHEAT (Minneapolis Up 1, Kansas City Up 1)
Spring wheat harvest is nearing the end as the USDA reports 91% complete, which is 16 % ahead of the 5 year average. Wheat exports were better than expected at 23.5 mln bushels, which is about 6 mln bushels higher than the needed weekly amount. For what it’s worth, nearly half of the wheat shipped this week was winter wheat where last week it was spring wheat. In world news Russia’s wheat crop estimates continue to rise, now at 72.8MMT up nearly 2 MMT from the last estimate. Nearby support for Minneapolis Dec futures is found at $4.8025 with resistance at $4.99. Nearby support for Kansas City Dec futures is found at $3.96 with resistance found at $4.16.