September 11, 2012
Producer Marketing Manager
As we mark another year of the anniversary of 9-11, don’t forget to take a moment to remember those who lost their lives 11 years ago today and for those who continue to serve to keep ours free.
Corn: As of 7:45 Up 1
Crop progress released by the USDA yesterday afternoon showed 15% of the crop is harvested, 10% ahead of last year and the 5 year average. Yesterday’s selloff were a result of weaker cash markets and a weather forecast that looks to be suitable for rapid harvest progress for both corn and soybeans. The weakness in cash bids look to be directly tied to the export inspections number that was out yesterday as well. Bushels inspected for export this week were at 9.7 million bushels compared to 23.3 million bushels a year ago. Average trade guess in tomorrow’s USDA report is a total production number of 10.403 billion bushels, a yield of 120.6 bu, and a carryout of 618 million bushels.
Soybeans: As of 7:45 Down 5
Soybean harvest is underway and a little ahead of average. USDA reported the US crop at 4% harvested which is slightly ahead of the 2% average. This weekend I was on the road through central MN into east central WI and saw many soybean fields harvested already (Group 07 maturity if the field signs were accurate) and many more fields just days away. Average trade guess in tomorrow’s USDA report is a total production number of 2.638 billion bushels, a yield of 35.5, and a carryout of 106 million bushels. Technical indicators are bearish at this time.
Wheat: As of 7:45 MPLS Up 2, KC up1
Wheat also started the week closing lower as a combination of pre report positioning, spillover pressure from corn and beans, and disappointing export inspections all factored in. Market chatter an Australian dryness and the potential impact to their wheat production as well as continued questions on whether or not Eastern Europe will have enough exportable surpluses of wheat or will it be limited. Stay tuned.
What to watch for: Tomorrow morning USDA releases its September Supply/Demand report at 7:30 am.