March 17, 2017
Matt Erickson
Grain Marketing Specialist

Export inspections to be released this morning.

CORN (Down 1)
It was a short trading week last week with the market being closed for Good Friday. Corn finished the week up 11.5 cents and 17 cents above the short-term low. Most of the bullish sentiment was around potential planting delays over much of the Eastern corn belt. Although this is a concern, it is still important to remember that the U.S. can plant ½ its crop in a weeks’ time if conditions are right. We will see how the weather pattern holds this week as rain seems likely through mid-week. Export sales last week were a little disappointing but most expect this morning’s inspections to continue to show strong corn demand. The USDA report last week did not show us much as corn carryout was left the same at 2.32bln while world stocks were raised to a number just above trade expectations. For May corn futures nearby support is found at $3.67K with resistance showing up at $3.73.

There were no key reversals on the nearby Soybean day chart but a new low was made that we haven’t seen since last April. The overall gain for May beans last week was 13.5 cents coming off the low. The USDA report was slightly bearish last week, increasing bean carryout to 445 mln bushels while world stocks were raised well above expectations due to increased production expectations out of South America. It will be interesting to see how planted acres will end up as the bean/corn ratio comes racing in while at the same time wet weather delays corn plantings in the East. Nearby support for May beans is seen at $9.365 with resistance at $9.595. Below is a look at the bean/ corn ratio…

WHEAT (Minneapolis Up 2, Kansas City Down 3)
Minneapolis futures bumped off a low set earlier last week and posted a gain of 12 cents for the week while Kansas City improved 5.5 cents. Weather looks favorable for the wheat areas in the South as 1-3 inches of rain is expected this week. World wheat stocks were raised in this past week’s USDA report slightly above trade expectations and the domestic carryout is estimated at 1.159bln bushels. Nearby support for Minneapolis May futures is found at $5.1525 with resistance at $5.3725. Nearby support for Kansas City May futures is found at $4.15 with resistance at $4.32.