March 10, 2017
Grain Marketing Specialist
Wheat Growers will be hosting multiple Marketing Meetings from the 13th to the 15th of March. Call your local Grain Marketing Specialist to RSVP by TODAY!
Corn: 1 lower
As was expected, USDA did increase Brazil’s corn number from 86.5 mmt to a whopping 91.5 mmt, blowing most expectations out of the water. USDA also increased Argentina’s numbers by 1 million metric tons. Demand for corn kept this market from falling out of bed, as it was reported that there were total sales of 29.2 million bushels, with 57.2 million shipped. Total exports are up 66% from this time last year. With demand, for corn, up, traders are waiting to see if the USDA will increase export numbers in the upcoming March 31st Quarter Report. Technically we have seen corn touch every one of its moving averages this week. Yesterday’s May futures close found support at the 100-day moving average at $3.67 as did the December futures at $3.88. The next support line, for May, is at $3.65 with Dec trying to hold $3.88, but has a chance to visit $3.85.
Soybeans: 5 lower
USDA increased Brazil’s soybean crop from 104 mmt to 108 mmt. This was higher than the expected number. US ending stocks also seen an increase of 15 million bushels from the last estimate of 420 million. US expects Brazil to export 2.24 billion bushels versus the 2.025 we are going to export. Export sales, reported yesterday, were at 17.8 million bushels, with 36.1 million bushels shipped. This is keeping pace with expectations. Technically speaking, May futures have moved to a down trend and will likely revisit January lows around the $10 mark. November futures are trying to hold support at $10, we will see if it can hold its sideways trend.
Wheat: MPLS 3 higher. KC steady
USDA reduced ending stocks by 10 million bushels to 1.129 billion bushels. World ending stocks increased by 1.33 mmt to 249.95 million metric tons. Export sales, reported yesterday, came in at 14.4 million bushels, with 16.6 million bushels shipped. There is still plenty of wheat out there. Traders are now turning their eyes to the southern Plains and waiting to see what conditions the winter wheat is in due to dry conditions.