September 6, 2012
Grain Marketing Specialist
As of 7:30am Old crop up 3 New crop up 3
Corn values under pressure yesterday as we see traders debate a wide range of production estimations. Informa will be coming out with estimations for crops on Friday. Informa is expected to issue two crop estimates combining both the USDA acres and September yield predictions in one estimate with a larger FSA adjusted acreage figure and final yield prediction for the second estimate. Look to see the trade remain anxious until the Sep 12 report. Technically speaking we are still seeing this thing hovering around the 8 dollar futures mark. Should this market decide to slide look for decent support around the $7.75 area.
As of 7:30am Old crop down 6 New crop down 6
Soybeans fell to the pressure yesterday led by the nearby bids and weakening cash values. The Trade is concerned of the large fund long position that is being held in the nearby bids. We could continue to see some liquidation to offset the large position. Inform will be coming out with estimations on Friday. Brazil exports are at a multi year low, stronger demand for US soybeans. This market in the long run still needs to curb demand.
As of 7:30am Spr. Wheat up 7 Win. Wheat up 8
It’s the same old story for wheat. It is following corn as a feed grain. Egypt is bidding for wheat. U.S. wheat demand is very poor. Exporters and mills are plugged. U.S. wheat $50 over world trade. Wheat will continue to follow corn.