February 27, 2018
Grain Marketing Specialist
Trading a penny to both sides in the overnight market but falling short of that 4.00 mark that we tested yesterday. There is an enormous amount of sell orders at 4.00. If we break through we could see another round of fund buying. Solid export inspections out yesterday at 51.4 mln bu. We also had a USDA announcement of 125k mt sold to an unknown destination for the 17/18 marketing year. Argentina weather remains the immense fundamental factor. Crop scout Cordonieer lowered the Argy corn production estimate, down 1 mmt to 36 mmt. Below is a look at the new crop 2018 corn chart.
Yesterday the market couldn’t hold on to extended gains and the nearby contract closed in the red. The midday forecast showed rain showers across the Pampas areas of central Argentina. It has been determined that these showers are just a fraction of what is actually needed to sustain the regressing crops. The USDA announced a 132k mt soybean sale yesterday morning for the 17/18 crop. Inspections came out in line with projections at 28 mln bu. China of course being the number one destination. 10.50 is holding resistance on the May contract. If dryness continues funds will continue to buy. The new crop contract closed up 2 cents yesterday as it starts to look at planting intentions, which will come out the end of March.
Wheat: MPLS up 1. KC up 7
WW snagged an 8 cent gain yesterday and early this morning hit 7 month highs. US Wheat regions continue to fight drought stricken fields with little relief in sight. 89% of Oklahoma is considered to be in “severe” drought. Japan is tendering for 137k tonnes of milling wheat. 66k US, 36k Canada, and 35k Australia. China sold another 222k tonnes out of state reserves yesterday.