December 5, 2012
Producer Marketing Manager
Corn: As of 7:45 - Steady
Yesterday corn was a little lower in the nearby months on slow demand, and higher in the deferred months (July forward). Informa Economics released their global estimates yesterday and lowered both Brazil and Argentina corn by about 1.6 MMT. They also raised China’s production by 4 MMT from last month’s estimate. On the demand side of the equation, Taiwan bought Brazilian corn this week as US prices continue to be higher than world competitors. Weekly ethanol production numbers will be out this morning with no huge increases expected. Technically we are still looking at $7.77 as resistance on the March contract. Keep an eye on the Dec 13 contract as that has gained on the nearby months and is now trading back into the mid $6.40 area.
Soybeans: As of 7:45 UP 7
Yesterday soybeans managed to hold on a close positive for the day. The late surge in prices was reportedly on possible new sales of soybeans to China off the PNW. With the US soybean export program in full swing, the trade continues to be very concerned about the eventual closing of the Mississippi River near St. Louis in the next 2-3 weeks as water levels decline. Informa lowered Brazilian soybean production slightly and decreased Argentina bean production by 1.1 MMT.
Wheat: As of 7:45, Mpls Up 2, KC Up 4
Yesterday marked the fourth straight lower day for wheat markets. Still no relief in the immediate future for HRW conditions. The Northern Plains have a chance for a little precip in the next 5 days.
What to watch for: USDA S/D report out on December 11th.