December 13, 2016
Grain Marketing Specialist
CORN: As of 7:45- down 1
On Monday, export inspections came out at 33.89 mln bu, slightly lower than what was expected this week. Although our year to date shipments are up 86% from a year ago at this time. The USDA also announced decent sorghum inspections this week, they came in at 8.95 mln bu. Corn was able to hold to the plus side thanks to a weaker dollar and crude oil being sharply higher. Corn was able to close at 3.60, this has been strong technical resistance and we haven’t been able to close above it since the beginning of November.
SOYBEANS: As of 7:45- up 5
Monday morning China bought another 256 TMT for delivery in the 16/17 marketing year. Chinese crush margins are now at a 2 year high. Export inspections came in at 67.52 mln bu. and it is no surprise that China was the leading destination. Despite great exports soybeans couldn’t find support and ended the day down 6 cents on the nearby contract. Argentina’s weather looks to improve next week, bringing rains to some of the dryer areas. As for the NC soybean contract, it has started to flatten out at the top end of its range. New crop soybeans closed down 3 at 10.22 on Monday. Below is the daily new crop bean chart and the circled bar represents August 2 2016 the low that day was 9.03 and we have rallied since.
WHEAT: As of 7:45- Minneapolis down 1 Kansas down 1
Wheat inspections were right in line with expectations on Monday at 16.19 mln bu., but this is still below what is needed weekly to meet USDA projections. The wheat market was lightly traded making it easy for the market to feel pressure from the good yields in South America and Australia. This cold snap raises concerns about winter kill in areas of the Midwest that have little to know snow cover. The Minneapolis nearby contract closed unchanged on the day at 5.37. The Kansas nearby contract closed up 1 at 4.14. The federal reserve will meet this week, today and Wednesday to discuss and make a decision on whether or not to increase interest rates, so watch for the commodity markets to be trading that news over the next couple days.