February 06, 2018
Grain Marketing Specialist
Concerns over rising interest rates and falling stock prices sent commodities lower yesterday.
Monthly WASDE Report out on Thursday at 11am.
March corn futures managed to stay above the 100-day moving average of $3.57 futures on yesterday’s trade. Market traders, concerned about higher interest rates, decided to get out of futures markets despite weather concerns in South America. Argentina remains dry, while Brazil got some rains over the weekend. Drier forecasts, for Brazil, as the week progresses, will help second corn planting. USDA announced, yesterday, that export inspections, for corn last week, came in at 42.3 million bushels. The US also reported a sale of 5.1 million bushels of corn to South Korea for this marketing year. March corn is trading toward the upper end of its most recent trading range. Expect short term resistance to be at $3.62.
Soybeans: 5 higher
Argentina crop concerns seemed to be a second thought yesterday as investors scrambled to get some cash. Brazil’s soybean crop is expected to come in around 4 billion bushels, and USDA may lower the Argentina’s estimate on Thursday. Export Inspections, from last week, were report at 47.9 million bushels. There was also a 7.3 million bushel sale, reported by the USDA, that was sold to unknown. South American weather concerns will keep this market bouncing back and forth. Looking at the March futures contract we see that soybeans found some support at $9.70 futures, with resistance at the 20-day moving average of $9.77.
Wheat: MPLS – 1 higher. KC – steady
Uneasy investors, a higher dollar, and improved weather forecasts for the southern US, had wheat falling yesterday as well. Statistics Canada estimated all wheat stocks to be at 23.56 million metric tons. This was down from the 24 million metric tons from this time last year, but still enough to be direct competition with US wheat. USDA reported that 15.7 million bushels of wheat were inspected for export last week.