February 9, 2017
Grain Marketing Specialist
Report day! 11:00 A.M. USDA releases the S&D report.
The nearby corn contract was able to break through the 200 day moving average and close at 3.70. In the overnight we saw a narrow 2 cent trading range. Export sales came out this morning with corn at 38.3 mbu. Right in line with expectations and down 6.7 mbu from last week. Ethanol grind continues to be strong, making some analysts believe we could see a 20 mbu decrease in ending stocks in the 11 AM report today. Average trade guess is 2.335 bbu. New crop corn futures are currently sitting at 3.97 with market volatility at report time, it could cause swings into the 4.00 area. Have your targets in and working.
Beans: down 3
Beans were the leader again yesterday closing up 16 cents on the nearby contract at 10.58. Soybean exports out this morning were, 19.7 mbu up 3.2 mbu from last week and right in line with expectations. In today’s USDA report the average trade guess for soybean ending stocks is 412 mbu, down 8 mbu from the Jan report. Early reports from South America’s bean crop has been slightly better than expected. We could see a slight adjustment to SA production in the report at 11:00 AM. The USDA announced a 107,000 mt sale of soybeans to an unknown destination in the 16/17 marketing year.
Wheat: MPLS up 1 KC down 2
Yesterday MPLS wheat closed 5.57 right up against the 50.0% retracement. This morning we were able to trade above that to 5.59 where we are right now. Export sales for wheat came in at 19.4 mbu up 2.8 mbu. Average trade guess for the S&D report today is 1.176 mbu vs 1.186 in January.