October 24, 2012
Producer Marketing Manager
Corn: As of 7:40 UP 2
The corn market was lower yesterday on lack of fresh news and weak outside markets. Equity markets were hit hard as the S&P 500 dropped 1.5%, crude oil hit its lowest level since July, and the US Dollar index was up significantly. We did see some buying later in the day that brought us up off of the morning lows, mainly due to the strong soybean market. On the demand front we did see a sale to Mexico yesterday that was switched to non-US origin corn. Look for continued resistance on the Dec futures around that $7.70 area.
Soybeans: As of 7:40 Up 10
Soybeans had a strong day yesterday in light of the downward pull from the outside markets. We put in the lows around 9:30 (down 15) and traded higher all the way into the close. We have continued that momentum into this morning and are currently trading around a dime higher. Does yesterday’s price action indicate some fresh export demand that has been uncovered? I think it does. In the chart below you can see we have traded thru the $15.50 area on the Nov futures that has been giving us some resistance since the first of October.
Wheat: As of 7:40 MPLS Up 2, KC Up 4
Outside markets were toughest on the wheat markets yesterday. The stronger dollar especially is hindering chances of being competitive in the world export market. Interesting to note - Ukraine’s Ag Minister confirmed a full ban on wheat exports starting Nov 15th.
What to watch for: Private estimates on the November S/D report will be rolling out starting on Nov 1.