January 13, 2017
Grain Marketing Specialist
Markets will be closed Sunday evening, January 15th, and on Monday, January 16th, for Martin Luther King Day. They will open again on Monday evening.
Corn: 2 lower
Initial reactions to yesterday’s report were negative, but by the end of the trading session corn managed to close unchanged and stay within its sideways trade. Below is a summary of what happened yesterday. Corn production was lowered by 78 million bushels to 15.148 billion bushels. Ending stocks were lowered 48 million bushels to 2.355 billion bushels. The flip side to this was they lowered demand by 25 million bushels. Despite the lower numbers there is still a lot of corn out there to move.
Soybeans: 6 lower
Surprise. Surprise. USDA lowered production and ending stocks, after most analysts’ predicted more production. Total bushels taken off surmounted to 60 million bushels. We have broken through some resistance points on the March ($10.21) and Nov ($10.10) SB charts. This potentially setting the stage to revisit highs made back in December. Here’s something to think about. Early estimations of US planting acres, which we will not see until March 31st, are coming in around 88.6 million. This is 5.2 million more than 2016. The Corn to bean ratio is at 2.6.
Wheat: MPLS steady. KC 3 steady.
Winter wheat planting were reported at 32.4 million acres. This is 3.7 million under last year’s 36.1. Some news sources are reporting that this may be the lowest acres since 1909. That was about the only thing that allowed wheat to carry higher. Overall there was an increase in ending stocks by 43 million bushels. We shall see if wheat can keep the rally going.