December 12, 2016
Grain Marketing Specialist
CORN: As of 7:45 down 1
Fridays the USDA report was neutral leaving carryout unchanged at 2.403 bbu the market traded sideways after the report was released and then rallying 6 cents closing at 3.59. Regaining what was lost on Thursday and closing above the 20, 50, and 100 day moving average. Ethanol and crude both rallied today helping to hold on to the gain in corn. The OPEC and non OPEC countries met on Saturday and agreed to the 1.2 million barrels per day cut back. The USDA had world corn production up by 9.2 mln tons to 1.039 bln tons.
SOYBEANS: As of 7:45 up 2
Soybeans traded to the downside, bouncing off the 20 day moving average at 10.22 before rallying into the close up 10 at 10.37. The USDA did not change soybean carryout, leaving it at 480 mln bu even though exports have been much higher than a year ago this time. South America is expected to be strong competition in 2017 once they get into their bean harvest. This could limit US exports. CONAB has the Brazilian soy crop at 102.45 million tonnes, this is up 7% from last year. Global soybean production was raised 1.9 million tons to 338.0 million tons in this USDA report.
WHEAT: As of 7:45 Minneapolis down 3 Kansas down 6
The USDA report left the wheat carryout unchanged at 1.143 bbu, although global wheat production for 16/17 was raised 6.5 million tons. Australia was the leading cause of that with their production being raised 4.7 mln ton. Spring wheat closed up 5 and Winter wheat closed up 8. Extreme cold weather hit the Midwest this weekend with little to know snow cover for the crop in the field.