Feb 2 2017
Grain Marketing Specialist
Corn: 3-5 Higher
Corn market put in a strong performance yesterday as we saw the nearby contracts surge to up 8 1/2 with the Dec contract up 9. The bullish response was from positive ethanol data that was released. We saw a record 1.061 million bpd which is up around 10.6% higher vs. last year. Some expect this number to decrease due to several rumored plant slowdowns. We did see the market back off on the overnight session with most markets down a penny. With yesterday’s spike we are just trading around our 200 moving average of 3.68 ½
Soybeans: 5-8 Higher
Soy complex gain some steam with the strength in the corn and surged to closed up 12 ¼ on the March contract. Oil also had a good day to close strong at 46 pts higher. The big news that also helped the beans was a rare export announcement. This would be just the 3rd one for this year. That momentum pushed into the overnight session as we saw them close up 3 on the nearby and up 4 on the Nov. the market is still watch the weather down south as both Brazil and Argentina is expected to see some rain fall. Although most of the rain will fall were it is not needed.
Wheat followed the strength of the row crops yesterday as KC popped up 11 and MPLS followed that with trading up 7 ¼. They did take a rest on the overnight after their biggest move of the year. We are seeing some cold weather over in Europe, biggest concern would be Russia, but some expect the damage to be minimal. We will see what crop stocks for Canada as those will be released tomorrow.