January 3, 2018
Producer Marketing Manager
CORN: As of 7:45 – Up ½
A higher day yesterday as a weaker dollar, strength in the wheat markets, and beginning of the year fund buying all lent some support. We are currently bumping up against the 50 day moving average at $3.55 on the March futures, the highest that contract has traded in nearly a month. Interesting to note that the double crop corn, safrinha, in Brazil is expected to be down 9% on anticipated delays in planting. May lead to a 4 million ton reduction in production. A well followed crop scout is keeping Brazil’s corn crop unchanged at 88 MMT….for now.
SOYBEANS: As of 7:45 – Up 5
Soybeans traded both sides of unchanged yesterday before closing in positive territory on the day. Dr. Cordonnier pegged the Brazilian crop at 109 MMT, up 1 from last week. He left the Argentina unchanged at 55 MMT. Export inspections out yesterday were at 41.9 mbu towards the low end of the expected trade range (40-48).
WHEAT: As of 7:45 – Up 4
Wheat actually felt like it led the markets higher yesterday on a welcomed weather rally. The below zero temps plunged into OK and looks to affect the later planted HRW that has less growth. I did get to visit with a grain buyer in KS yesterday and they are more concerned about the fact that they haven’t got any meaningful precip for nearly 90 days now. Something to keep an eye on. We continue to trade higher this morning and the HRW contracts have broken through the 50 day moving averages now.