December 28, 2016
Grain Marketing Specialist
The next USDA report is coming up on January 12th where we will reevaluate current grain stocks
CORN (Down 2)
Great start to the week as corn finished up 9 on Tuesday as most of the rally is attributed to fund buying as they purchased 7,000 contracts for the day. We are currently a few cents off nearby resistance at $3.56H17 with the next level above that at $3.64H17. Export inspections were reported at the high end of expectations at 38.2 mln bushels with the largest destination being Mexico at 10.2 mln bushels. Argentina seems to be sitting comfortable at the moment on moisture with the rain they have received over the past couple weeks. The Northern tier of Brazil is expected to be warmer and drier over the next couple weeks. Below is a look at the day chart for March 17 corn with the 100 day moving average.
SOYBEANS (Down 4)
Beans led the way Tuesday as we were able to gain back just over half of what we lost last week on the board. Funds were buyers of 10-15k of beans and around 6k meal contracts. Export inspections keep clipping along at a good pace as 62.8 mln bushels were reported shipped last week. This was towards the high end of expectations and China was the largest buyer with 43.1 mln bushels for the week. Nearby support for March beans remains at the 100 day moving average of $9.98 with resistance showing up at $10.25H17.
WHEAT (Minneapolis Unchanged, Kansas City Down 2)
Wheat followed the corn and bean lead Tuesday and finished higher. Export inspections were reported at 19.1 mln bushels which was just above the high side of trade guesses. Winter wheat shipments were reported the highest for the week at 7.6 mln bushels with Hard red spring a close second at 6.7 mln bushels. Funds bought an estimated 5,500 contracts Tuesday aiding to the rally. Nearby resistance for Minneapolis March futures is found at $5.45 with support at $5.28. Nearby support for Kansas City March futures is found at $3.995 with resistance at $4.195.