December 1, 2017
Grain Marketing Specialist
CORN – As of 7:45 – steady
A higher trade yesterday can mostly be attributed to technical buying and short covering on month-end. Export sales released yesterday morning were slightly weak at 23.6 mbu vs. 42.6 last week and a 28-43 mbu expected range. Brazilian currency is trading more favorably for their export business vs. the US dollar right now. Weather is also generally favorable in South America right now. Overhead resistance on the March contract is at the 50-day moving average around $3.60.
SOYBEANS – As of 7:45 – up 3
China’s weaker bean complex spilled over into our market yesterday, and we saw a loss of 6¾ cents on the nearby January contract, closing slightly below the 50-day moving average. Rains in Cordoba, Argentina were better than expected, and that leads some traders to believe that more good rains will be coming their way this weekend – not good for a sustaining weather scare rally. Export sales were within expectations at 34.6 mbu and slightly higher than last week. A flash sale announcement yesterday morning was refreshing with 525k metric tons to China and 132k to unknown. Our Chinese sales right now are down 25%.
WHEAT – As of 7:45 – Mpls up 4, KC steady
A weaker dollar early in the session yesterday helped wheat make small gains, but they quickly fell away and Minny ended up down 1 while KC was left unchanged on the day. Total wheat sales reported yesterday were 6.8 mbu vs. 9-17 expected and 7.3 last week. As far as demand goes, Saudi Arabia is needing to buy 480k tons of hard wheat. Winter wheat in the US looks fairly decent but warmer temperatures in the south are raising some concerns that the crop may grow too much before winter dormancy.