January 11, 2012
By: Lynn Miller, Grain Originator-Grebner
A stronger dollar and weaker crude will weigh on commodities today.
CORN: 5 Lower
REMARKS: Look for corn to remain choppy and fairly quiet today coming into tomorrow’s USDA report. There is an overall feeling that this report may not mean much with rains again coming to a halt in Argentina; however, it is the final 2011 production report and should at least bear keeping an eye on. Trade is expecting to see some decline in yield and overall production; however, it is common for the USDA to find additional harvested acres on this report which could zero out any impact of a shorter crop. Pressure for a higher dollar and some limited profit taking will probably hold us down today. Overall the short-term picture continues to look pretty good with nearby resistance at $6.77.
SOYBEANS: 13 Lower
Rains of ½ to 1 ½ inches in S. America and moisture moving into Brazil are pushing some optimists back this morning. With a return to triple digit temps and a pattern of dryness on tap for them I don’t expect us to stay down long. Look for the trade to be fairly choppy today as we come into tomorrow’s report. I believe the trade is expecting an increased carry out tomorrow with crush margins off slightly and exports running well behind. I’m not long-term bearish beans though and believe any cuts to S. American production will trump carryout. I’m patiently waiting to see how this stories going to unfold. If this S. American drought comes to fruition and export demand shifts drastically to the US an acre battle is going to be interesting. Currently I am watching a resistance level of $12.90 in the March and 12.59 in the November.
WHEAT: 3 Lower
Wheat continues to be a uninteresting. World supplies are plentifull, we can’t compete with the blue light specials in the Black Sea and our own winter wheat crop continues to get better. Wheat’s will follow corn today.
The information contained above was taken from sources which Wheat Growers believe to be reliable, but is not guaranteed by Wheat Growers as to accuracy or completeness and is made available for information purposes only. There is a risk of loss when trading commodity futures and options.