December 7, 2016
Grain Marketing Specialist
Friday December, 9th the USDA WASDE report will be out at 11:00 A.M.
CORN: As of 7:45- down 2 at 3.58
The corn market Tuesday continues to be range bound. We saw a tight trading range and a high of 3.64 and later losing momentum and closing up 1 at 3.60 on the March contract. Early strength in the day came from USDA announcing a 276 TMT sale to South Korea for the 16/17 crop year. Also the funds were buyers of corn today, buying an estimated 20,000 contracts. Argentina corn is rated good/excellent but there is slight concern about the dry weather they have had. Argentina corn varies from early vegetative stages to the pollination stage.
SOYBEANS: As of 7:45 – Down 1 at 10.46
Soybeans saw a high of 10.61 before softening later into the day and closing up 4 at 10.47 on the January contract. The USDA announced 2 soybean sales Tuesday morning. One sale at 198 TMT of beans to be delivered to China in the 16/17 marketing year. The other was a 378 TMT sale to an unknown destination. 246 TMT of that is for the 16/17 marketing year. The remaining 132 TMT sale is for marketing year 17/18. Weather remains favorable in Brazil and Paraguay for the remaining month of December with 2 to 4 inches of rainfall expected. The New crop November 2017 contract has rallied over a dollar since August. It closed at a profitable level of 10.27 yesterday. The funds were buyers of an estimated 11,000 bean contracts on Tuesday.
WHEAT: As of 7:45 Minneapolis up 1 at 5.35 and Kansas down 2 at 4.14
The wheat market traded to the plus side early on Tuesday with the funds being buyers of an estimated 3,000 wheat contracts. The market later felt pressure when Canada’s estimated wheat production was released at 31.7 MMT slightly higher than the USDA had their cropped pegged at. Canada’s average yield was reported at 53.2 BPA. The next 7 to 10 days should bring snow cover to Kansas, Southern Nebraska, and Eastern Colorado. The southern plains look to be dry in the 12 day forecast.