Jan 20th 2012
Brad Olson
SDWG Grain Originator

Corn –unchanged

Sales to Mexico and South Korea, weaker dollar index and a strong weekly ethanol production had corn gaining back Wednesday’s losses yesterday. A stocks/use ratio of 6.7% vs. 8.6% a year will keep 11 corn nervous in the days to come.  Weekly export sales this morning coming in at 760 vs estimates of 550-750. Informa will be releasing another round of planting estimates today .Technically my indicators remain bearish with support at 5.76 CH2.

Soybeans – 4 lower

A weaker dollar and a sale of 120 tmt to China gave strength to soybeans yesterday. We will continue to watch South American weather as quality issues and losses could push business our way. Informa will be releasing another round of planting estimates today. Export sales this morning 991 vs estimates of 550-750. Technically all my indicators remain bearish.

Wheat – unchanged

World ending stocks increase last week and talk from a private analyst estimating Canadian plantings up as much as 7 million acres reclaiming wet acres from the past 2 years limited gains for wheat yesterday.  This morning, good weekly export sales of 587 vs estimates of 350-450 look to be supportive.