December 6, 2012
Producer Marketing Manager
It feels like this week has been much like a broken record: Declining Mississippi River levels……South American Precip……Slow Corn export demand……US Drought Conditions.
Corn: As of 7:45 Dn 6
The weekly ethanol production numbers were released and showed production levels increasing to rates we haven’t seen since June, although 13% less than last year at this time. So much for my status quo ethanol estimate that I had in yesterdays comments! Export Sales out this morning showed a dismal 1.8 million bushels vs the trade estimate of 14-22 million bu.
Soybeans: As of 7:45 Up 9
The soybean complex was up sharply yesterday with futures 20-24 cents higher in soybeans and $5-6 higher in meal. Continued wet weather in Argentina through the end of this week along with indications of continued China interest seemed to get us going early in the session. Soybeans have continued the push as we are trading 7-8 cents higher this morning. Soybean Export sales were solid this morning at 42 million bushels vs estimate of 18-26 million bu.
Wheat: As of 7:45 Mpls Up 1, KC Dn 1
Stats Canada released their end-of-season Crop Production report with all wheat production 27.2 mmt, up from their 26.7 October number, which was pretty much in line with trade expectations. This was their 2nd-largest crop in the last 16 years. Total wheat export sales out this morning was at 13 million bu, right at the low end of estimates (13-18).