February 09, 2018
Grain Marketing Specialist
Corn: 1 lower
USDA dropped corn carryout by 125 million bushels to give us a final stocks number of 2.352 billion bushels. Export numbers were increased by 125 million, while ethanol production remained unchanged. World corn stocks were also lowered from 206.57 million metric tons to 203.09 million metric tons. This is some good news, but there weren’t any fireworks in the corn futures. We still are butting up to resistance at $3.65 March and $3.95 December futures. Argentina dryness will continue to be on trader’s eyes as we progress through the calendar year.
Soybeans: 4 lower
Despite the findings of 60 million bushels, bean managed to close higher yesterday as traders continue to watch the dry weather in Argentina. USDA changed ending stocks from 470 million bushels to 530 million. This was a result of them lowering soybean exports by 60 million bushels. World stocks were lowered very slightly from 98.57 million metric tons to 98.14 million metric tons. Technically speaking March soybeans are finding resistance at 100-day moving average of $9.88 with Nov futures finding resistance at $10.05.
Wheat: MPLS – 4 lower. KC – 5 lower
Winter wheat fell by four cents yesterday, at the USDA raised ending domestic wheat stocks from 989 million bushels to 1.009 billion bushels. Wheat exports were cut by 25 million bushels. This was somewhat expected as there is plenty of competition for wheat worldwide. World ending stocks, however, were estimated lower by about 2 mmt to 266.1 million metric tons. Bearish news keeps wheat in check, but traders are watching weather in the western growing areas of the US.