October 14, 2016
Producer Marketing Manager
CORN: As of 7:45 – UP 4
Yesterday the corn market gained back everything lost on Wednesday and more! Overnight we were able to trade above the $3.50 mark on the Dec contract on rather large trading volume. This is the highest we have traded since July 18th. As we near the halfway point of the 2016 crop insurance harvest price for December 2016 corn futures, we are averaging $3.4417……compared to the spring price level of $3.86. Looking at near term resistance on the Dec contract around the $3.60-3.66 areas now that we have traded above the $3.50 level. Export Sales out this morning were as expected at 34.4 million bushels.
SOYBEANS: As of 7:45 – UP 4
Checking in on the 2016 crop insurance harvest price level for Nov 2016 soybean futures, we are at $9.577 through yesterday. This is above the $8.85 level established in Feb. We were higher yesterday in the bean complex and looked to be a follower of the wheat and corn markets. Harvest pressure has the pipeline FULL and delivered values to the PNW and Gulf are declining by the day. The larger than expected crop is also weighing on spreads as the Nov-Jan is now out to 8 ½ cents carry this morning. Soybean export sales out this morning were above expectations at 52.1 million bushels, although not quite as high as last week’s 80.1 figure…..
WHEAT: As of 7:45 - UP 4
Egypt tendered for some wheat yesterday and didn’t buy US wheat despite it being competitive to other origins. The Mpls Dec contract traded through and closed above the 50% retracement level yesterday and is putting on additional gains this morning. I would expect some resistance around the $5.42 level. Wheat export sales were at 18 million bushels which was middle of the road on expectations. (12.6 of that was HRW)