December 23, 2016
Producer Marketing Manager
We wish you and yours a Merry Christmas! All WG locations and the futures markets will be closed on Monday, Dec 26th.
CORN: As of 7:15 – Steady to down 1
Corn was unchanged yesterday as the market shook off the weakness in the soy complex and digested the large weekly export report. Corn sales were reported above the high end of expectations at 49.2 mbu. Japan and Mexico were the leading buyers purchasing 21.1 and 14.7 mbu respectively. The market has been lower for 6 trading sessions now and is back toward the bottom of the range ($3.45 - $3.65) we have been in for quite some time.
SOYBEANS: As of 7:15 – Steady to up 1
Heavy thunderstorms break dryness across Argentina through Sun.-Mon. with totals expected of another 1.75"-3.50" as shown in the graphic below. This has weighed on the soybean market all week. At this point in the growing season in Argentina, production estimates remain unchanged at 56 mmt. Brazilian traders suggest the initial harvest is already underway, and the big push there will start in the next 5-10days and will be flowing toward the export channels and will start to compete with US beans in the next few weeks. Crop estimates are starting to swell toward 104-106 mmt.
WHEAT: As of 7:15 – Steady
Wheat was lower across the board yesterday. Exports were 10.9 million bushels, below the 11-18 expected. The breakdown was 6.6 HRW, 3.7 HRS, and 1.1 SRW. Interesting to note as we have mentioned suspect quality in the Canadian HRS crop…..the Canadian Grain Commission update shows concerns with Fusarium in the Manitoba crop districts. The March MPLS contract continues to bump the upper end of the range and the 50% retracement level at $5.43, mainly on good export numbers and decent spot floor premiums.