December 4, 2012
Producer Marketing Manager
Corn: As of 7:45 Down 2
Yesterday corn traded double digits higher before the lower than expected export inspections were released and caused the market to ease back and eventually close up 2 cents. Weekly inspections of corn were 9.626mbu, below expectations of 15-19mbu. The trade is concerned about Mississippi River levels, but with the lackluster demand for corn, I think it is more concerning for the soybean market, where we still have a solid export program to execute in the next 3 months. For prospective on where the Dec 13 price is relative to past opportunities, the chart below shows Dec corn futures for the next crop year.
Soybeans: As of 7:45 Down 4
Soybeans were the leader yesterday closing 15 cents higher. Soybean export inspections were 51.1 mbu, just below the low end of 52-57 mbu expectations. News yesterday was that the Army Corps of Engineers is going to start removing rock formations that are threatening barge traffic in these low water conditions beginning Jan 3rd. This is a month sooner than initially planned.
Wheat: As of 7:45 Mpls Up 1, KC steady
Both Mpls and KC Wheat markets were weaker yesterday, although did trade higher most of the day on the news of our first Egyptian sale of the crop year. Will other countries follow suit? Still no meaningful precip is expected across the HRW Belt through the next two weeks with totals of traces to .2”. Continue to look for range bound trade.