December 14, 2016
Producer Marketing Manager
CORN: As of 7:45 – Down 1
The corn market was steady yesterday, closing up a penny at the end of the day. At NGFA’s Country Elevator Conference this week in Chicago, the common theme was large production and a significant amount of unpriced corn on the farm. March corn traded to $3.64 ¾ yesterday, the highest that contract has been since election day.
SOYBEANS: As of 7:45 – Down 6
The soybean market is very reactive to hourly changes to the Argentine weather forecasts. Some moisture stress is appearing in drier soybean areas of Argentina. If the forecasted rains for next week fail to develop, the situation could deteriorate very quickly and cause the funds to increase their long positions. In other news in the soy complex, Six crush plants in the southern province of Guandong were ordered to temporarily halt operations overnight due to environmental concerns. It remains to be seen if these are temporary measures, but the local soybean meal supply is expected to tighten & prices in the province already jumped more than 6%.
WHEAT: As of 7:45 – Down 2
The wheat markets traded higher in tandem with corn yesterday. Interesting to note in the HRS market…….1.9 Million Bu came out of MGEx delivery stocks last week. Over the last 4 weeks HRS exports totaled 34 million bushels, the highest 4 week total in 20 years. We do continue to see burdensome stocks of HRW in delivery position as well.