January 11, 2017
Drew Johnson
Grain Marketing Specialist

US Quarter Stocks Report out at 11 am on Thursday, January 12th.
Be sure to have your targets in place!

Corn: 2 lower

Corn continues its sideways trek. It was reported, yesterday, that there was a sale of 14.6 million bushels of corn for export. Taiwan took 5.1 million bushels and the rest was to unknown destinations. Interestingly to note. Corn exports are at a 16 year SEASONAL high. The talk, going forward, is that US corn exports should take center stage as Brazilian ports are holding a $.36 premium to the US. USDA Report out tomorrow. Expectations, right now, is for the USDA to keep US production close to the December estimate of 15.226 billion bushels. Ending stocks are expected to come in around 2.396 billion bushels. This would be lower than the 2.403-billion-bushel estimate.

Soybeans: 2 lower

The Brazilian crop agency, CONAB, released new production numbers this yesterday. They raised Brazil’s production number, for the year, by 1.4 million metric tons to 103.8 million metric tons. Some analysists think Brazil could have up to +104 mmt production. Flooding and dryness in Argentina has some analysists thinking there could be a 1-3 mmt drop in Argentina’s production. USDA is expected to increase US soybean production to 4.38 billion bushels. This is .02 billion bushels higher than the December estimate. Ending Stocks are expected to come in around 468 million bushels. This would be lower than the December 500-million-bushel estimate.

Wheat: MPLS 1 lower. KC 6 lower

We are seeing some pressure ahead of the Thursday’s report. We are seeing resistance, for March MPLS at $5.60 and March KC at $4.40. Tomorrows reports are expected to decrease winter wheat seedings by 2 million acres to about 34.2 million acres.