February 23, 2017
Grain Marketing Specialist
Ethanol numbers will be released this morning
USDA Ag Outlook forum is occurring today and tomorrow.
Corn closed up a couple cents ahead of the USDA Ag Outlook forum occurring Thursday and Friday. Some private estimates believe we may see bean acres top corn acres this year. In export news the USDA reported a sale of 5.4mln bushels to South Korea for 16/17 crop year. The average trade guesses for corn acreage tomorrow ranges from 89mnl on the low to 92.5 mln on the high end. Funds bought an estimated 2k contracts during Wednesday’s session. 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 (Down 4)
The trade seems to be pumping the brakes this week before the USDA Ag Outlook forum, now down 24 cents for the week. Average trade guesses for intended planted bean acreage range from 86.5 mln on the low to 92.5 mln on the high end. Brazil keeps getting hit with rain as quality issues look to become a larger concern in Mato Grosso. Average trade guesses for carryout for the 17/18 crop year with intended acres is 485 mln bushels. This is about 65 mln bushels above the current carryout estimates for this year. Nearby support for March beans is found at $10.17 with resistance showing up at $10.34 on the 50-day moving average.
WHEAT (Minneapolis Up 1, Kansas City Up 1)
Wheat acres are expected to be lowered from last year as the trade is expecting to see 46.5 mln acres for intended planted acres. The winter wheat market led the charge Wednesday as the forecast for the remainder of the week looks to turn cold over the Southern plains. Funds bought an estimated 5k contracts during the trading session Wednesday. Nearby support for Minneapolis March futures is found at $5.30 with resistance at the 50 day moving average of $5.53. Nearby support for Kansas City March futures is found at $4.475 with resistance found at $4.745.