Nov 7 2017
Darren Wilcox
Grain Marketing Specialist

 

Corn: 1-3 Lower
Dec contract  again failed to stay above $3.50 yesterday with its 50 day MA of $3.51 ¼ providing overhead resistance. That weakness spilled over into the overnight session as corn is rangebound. $3.50, then $3.51 are overhead resistance, support at $3.45 then $3.43 Weekly export inspections were poor at 444tmt and may have allowed futures to slip into the red at the close. USDA supply/demand report on Thursday Nov 9. Most guesses look for an increased yield…172.4bpa is average guess.  Crop progress report showed U.S. corn harvest at 70 percent complete, a 16% change week over week. At 54% complete. 5-yr aver is around 83%.SD was pegged around 61% vs 35% LW. Progress has been slow with many states in the Midwest receiving wet weather.

Soybeans: 2-4 Higher
Soybean futures finished 7 1/4 cents higher on expectations that the USDA will cut its U.S. soybean yield estimate and on concerns over slow planting in Brazil. That momentum could not be carried into the overnight as $10 seems to be a resistance point in the beans as they slipped 2 lower. U.S. export inspections for soybeans came in at 2,490,600 metric tons vs. trade expectations of 2.3-2.8 million metric tons. Many traders expect reduced yield, prod and carryout…49.3bpa is ave. guess. USDA was 49.5 in October. For most part locally, we are done with bean harvest, but USDA showed nationally we are about 91% complete. 

Wheat: 2-3 Lower
Kansas City traded 3 ¼ cents higher and Mpls traded 6 ¼ cents higher. The wheat markets traded higher yesterday on technical buying and ideas of better demand after the U.S. made a large direct deal with Iraq, selling 500,000 metric tons of wheat. Mixed as we close the overnight session as Mpls tries to pull away from KC. KC was down 4 and Mpls was down 3/4 . weekly export inspections were mediocre at best at 284tmt. technically MWZ 50 day MA is $6.27 ¼, 200 day MA is below at $6.22 and we trade highest level since late Sep. KWZ 50 day MA sits above at $4.36…recent high was $4.38 ¾ on Oct 25