January 12, 2017
Grain Marketing Specialist
US Quarter Stocks Report out at 11 am TODAY
Be sure to have your targets in place!
Corn: 2 lower
Corn managed a comeback, of sorts, and close only a penny lower yesterday. It was reported that China, starting January 12th, will enact a punitive tariff of 53% to 66% against any new purchases of US distiller grains for the next five years. That was the negative news. Other news from yesterday stated that the US had increased its ethanol production to a record 1.049 million barrels per day! Total US inventory also jumped from 18.7 million barrels to 20 million barrels. Export numbers, released this showed a total of 29.7 million bushels sold. This is above the 23.3 million bushels needed for the week. Shipments, however, were behind with only 23.7 million bushels shipped compared to the 45 million bushels needed to keep pace with USDA predictions.
Spill over pressure from corn and wheat, and forecasted rain in Brazil, kept the pressure on soybeans most of yesterday. By the end of the day soybeans relaxed, from double digit losses, to close down only 3. Traders wait to see what today’s report will bring. Exports sale numbers, released this morning, were at 10.7 million bushels. This was above the 8.2 million bushels needed to keep pace with USDA’s predictions. Shipments were also above USDA’s pace predictions.
Wheat: MPLS 3 higher. KC 3 lower
Minneapolis wheat managed to hold its own yesterday despite negative news hitting the Kansas City and Chicago wheat complexes. The negative pressure came from the updated weather forecasts that show a significant chance of precipitation for the dry Southern Plains. The concerns overall for winter wheat have not changed, but that was enough information to bring prices back some ahead of today’s report. Export sales numbers, released this morning for all wheat, showed a total of 14.4 million bushels. This was above the 9.4 million bushels needed to keep pace with USDA’s December demand predictions. Shipments, for last week, were at 6.3 million bushels. This was well below the 19.7 million bushels needed.