December 4, 2017
Grain Marketing Specialist
CORN – As of 7:45 – Up 1
Friday’s market ended corn 3 higher on the nearby March contract, a jump that the market seems hesitant to continue. Support can be found from a surging soybean market due to dry areas of South America. A private analyst has dropped their Brazilian corn production estimate to 63.5 mmt. Turkey is currently looking for 60k tons of corn in the form of 12k tenders. We can find resistance at the 50-day moving average of 347. December ’18 corn is trading around 390 right now.
SOYBEANS – As of 7:45 – Up 10
Light rains over the weekend in the dry areas of southern Brazil and Argentina are pushing for some follow-through buying action on the market today after closing 8 ½ higher on Friday. While there are small chances of rain this week in those areas, the longer-term forecast remains hot and dry. On the flip-side, the regions of Brazil where dryness isn’t a worry have the opposite problem: they are almost too wet. Those factors combined with stronger soymeal have left a gap on the January chart from 995 ¾ to 997 ¾, which the market will (most likely) try to fill at some point.
WHEAT – As of 7:45 – Mpls Up 2, KC Up 3
After Friday’s close of 9 ¾ higher in spring wheat and 6 higher in winter wheat, we are currently seeing some continued higher action from the wheat markets due to quality/quantity concerns in Australia from large harvest rains. We have seen reports of as much as 165 millimeters in 24 hours. Saudi Arabia has bought 495k metric tons of hard red wheat.