February 8, 2017
Grain Marketing Specialist
Tomorrow the USDA S&D report comes out at 11:00 AM. Get your targets in.
March corn was a follower of beans yesterday and closed up 4 cents at 3.68, right up against that 200 day moving average that we haven’t been able to break through. The USDA announced a 128,000 MT sale to japan for 16/17 marketing year. The US still has a 2.3 BBU carry out hanging over the top of us making it difficult for the market to find a reason to break out of this rut we have been stuck in since October. Argentina is expecting their corn exports to go up 3.9 mmt from last year to 25.5 mmt. More rains are expected to hit Brazil in the 5 day forecast, with the excessive rain they are expecting the Safrinha corn planting to get a late start. New crop corn futures closed at 3.96 yesterday. The market has not been able to close above that price since mid-June.
Soybeans: Up 9
Soybeans led the way yesterday on fund buying and possibly positioning ahead of Thursday’s report. The nearby March contract closed up 6 cents at 10.42. Not much for new news out of South America today, besides expected rains in Argentina, Mato Grosso, and Brazil. No flooding is expected but we could see US exports pick up until they are able to get back in the fields. We should see a more normal weather pattern for them next week. After Thursday’s USDA report the focus will shift from production and carryout to planting intentions and acreage numbers. New crop 2017 soybean futures closed at the profitable level of 10.19 yesterday.
Wheat: Mpls mixed KC up 1
Stress from the French election pushed the Euro down causing the dollar to spike yesterday. This put bearish pressure on the market. Minneapolis traded to both sides before settling unchanged at 5.55 on the nearby contract. Kansas City wheat was able to close up 3 cents at 4.39. Warmer February temperatures could break dormancy in winter wheat. The states of concern are Texas, Oklahoma, Kansas, and eastern parts of Colorado.