October 15, 2012
Drew Johnson
Grain Marketing Specialist

As of 8:00am Dec. down 9. Dec ’13 down 7

After a good report last Thursday and a bad export report Friday last week we are back to where we have been for the past few weeks. Last Friday it was reported that the U.S. bought 600,000 tons of Argentina’s corn. Weekly sales last week were only 4,200 ton vs 1.2 mmt of corn last year. Early season exports are down 44% with the USDA predicting an annual export loss of 25%. Some traders still believe we may need to see corn push a little higher to continue to ration demand. Right now, technically speaking, we are seeing corn finding some support around the $7.45 mark with stronger resistance around $7.03

As of 8:00am Nov down 25 Nov ‘13 down 10

Beans also are having a lot of bearish news being thrown at it. On top of better than expected yields coming out of the fields we also saw a drop in weekly exports. South American weather is turning favorable for planting and China also hinted at letting some reserves go. The only salvation is that US supplies are still inadequate and that should keep soybeans from falling out of bed. Right now we seem to be finding support around $15.

As of 8:00am Spr. Wheat down 3 Win. Wheat down 3

Fundamentally wheat is still following corn price action. Weekly sales were down. 279,000 tons of wheat was exported vs 483,000 last year. The Trade is continuing to debate a wide range of final U.S. export ideas. The Trade is expecting the U.S to see more demand as the Black Sea region and other supply areas are now limited. Funds long 57,000 contracts and we are still seeing wheat chop along sideways between $9.17 and $9.58.