February 23, 2018
Grain Marketing Specialist
CORN – As of 7:45 – up 1
We seem to have resumed into a sideways trending trade in the corn market. This is a concept that is rather familiar to traders, as we have spent a lot of time trading in some sort of range over the past year or so. March corn feels resistance at 3.70 and holds support not far below at 3.64. Weekly ethanol production yesterday was reported at 1.068 mil barrels/day, higher than the 1.016 number from last week. The USDA pegged planted corn acres this year at 90 million, vs. 90.2 last year.
SOYBEANS – As of 7:45 – up 3
The March soybean contract is hitting resistance overhead at 10.40 on the charts, but we are still well above the 40 and 100-day moving averages. Yesterday’s trade saw a lower close after trading on both sides of unchanged. Export sales this morning were atrocious, with a net 4.0 mbu worth of sales being cancelled. Dry areas in South America do not see much relief in the forecast. Focus in the next month or so will eventually turn towards US spring weather and planting conditions/intentions.
WHEAT – As of 7:45 – Mpls up 1, KC up 4
The wheat complex seems to trade the same thing every other day. The US southern plains are still dry, which gives winter wheat support and has some traders seeing a possible rally in the future. Warm conditions will remain there for the next several days. Interesting to note that the Kansas City market in closing in on the Minneapolis market, trailing by only $1.29 on the nearby March contract right now, vs. the high last summer on July 5th when Minny closed at a $1.79 premium to KC.