February 22, 2017
Grain Marketing Specialist
The next USDA report is on March 9th
CORN (Up 1)
Export sales of 4.1 mln to Japan for 16/17, 4.4 mln to unknown and 6.5 mln to Japan for the 17/18 crop year helped corn finish positive on Tuesday, despite the strengthening dollar. Corn export inspections were in line with expectations at 45.4 mln bushels, which is right in line with the needed weekly amount. One of the top destinations for the week was Japan at 13.1mln bushels. It is worth noting that Japan continues to look to China for corn due to PNW loading issues in the U.S. Brazil weather looks to remain wet over the next 7-10 days, which will delay much of their double crop corn plantings. Brazil’s corn harvest is around 23% complete and looks to be on pace with the 5-year average. Nearby support for March corn is found at $3.6175 with resistance at $3.80. Below is a look at the day chart for NC corn with the 50 day moving average.
SOYBEANS (Up 3)
Export inspections released Tuesday reported 39.6 mln bushels of loadings last week, a little below the average trade guesses. Top destination on the week was China with 17.3 mln bushels. Funds sold an estimated 5k contracts after the long holiday weekend. Rains in Brazil don’t seem to be a huge concern for the bean crop as most estimates on production are not being lowered. Overall estimates show the Brazil soybean harvest at 25% complete, which is 8% better than the 5-year average. Nearby support for March beans is found at $10.17 with resistance showing up at $10.35 on the 50-day moving average.
WHEAT (Minneapolis Up 1, Kansas City Up 1)
Wheat exports were reported at 20.5 mln bushels, which was just better than trade expectations. Wheat shipments off the PNW remain strong as 12.3 mln of the ~20mln bushels loaded last week were loaded there versus the Gulf. Funds sold an estimated 3500 contracts during market hours on Tuesday. The USDA did report a sale of 3.4mln bushels for this year and 1.7 mln bushels for next year to unknown on Tuesday. Nearby support for Minneapolis March futures is found at $5.30 with resistance at the 50 day moving average of $5.52. Nearby support for Kansas City March futures is found at $4.475 with resistance found at $4.745.