September 13, 2012
Producer Marketing Manager
Corn: As of 7:30 Up 1
Corn values retreated after the USDA S/D report was released on Wednesday morning. Funds looked to be liquidating positions after the S/D report had total production higher than most trader estimates. One thing to note about the corn numbers yesterday is that USDA used the same planted/harvested acreage as they used in their August report, and that leaves the trade thinking both planted and harvested acreage will be addressed by USDA in the October report. In dry years such as this we have seen the harvested acre number in the mid to upper 80% range. They are still using 90.6% of planted acreage. Technically we are bumping our first level of support around that $7.70 area.
Soybeans: As of 7:30 Down 3
Soybean futures took off yesterday as traders were back in the market pushing it up to levels we were trading at the end of last week. With the report now behind us the focus now shifts to US harvest reports and South American planting conditions. Too dry in Brazil and too wet in Argentina. While most think production potential is not yet threatened, delayed planting, thus delayed harvest is feared.
Wheat: As of 7:30 MPLS Up 5, KC Up 3
Wheat shook off the weakness in the corn market yesterday and finished 8 cents higher in KC and 16 higher in MPLS. The USDA report showed no change in production or usage for the US crop. World numbers of note included Russia down 4mmt from last month to 39mmt, and FSU exports were lowered by 2.0mmt to 19.6mmt. This is just over half of last year’s total exports, but still above the 13.9mmt shipped in the previous drought year of 2010/11.