Mar 13th 2012
Corn: Old Crop 2 higher, New Crop unchanged
Rumors of Chinese buying interest led the way yesterday. Any additional exports on top of what some belief is an underestimated corn use for ethanol estimate by USDA would pressure a current stock/use ratio of an already uncomfortable 6.3%. NC corn/bean ratio still hanging in the 2.3 area. We look to ride the China's buying train higher at the open again this morning.I have initial resistance at 6.65 and then 6.78 for May.
Soybeans: Old Crop 11 higher, New Crop 6 higher
With funds net long over 150,000 contracts liquidation, spread unwinding led to weakness yesterday along with a lower export inspection number than anticipated. This morning we are watching SA as Southern Brazil is reporting disappointing yields. I am watching how we react around 13.58 May as technical indicators are looking a little top heavy and may be due for a set back.
Wheat was a long for the ride yesterday, higher on corn strength. This looks to be the case again this morning. With ample stocks wheat is being seen as a feed substitute thus being influenced by the corn market.