Dec 12th 2012
Brad Olson
Grain Marketing Specialist

Corn:  As of 7:30- 1 lower

Corn was drug lower yesterday by a weak wheat market. US balance sheet was left unchanged with the only major change to the world balance was an increase in Chinese corn production that was equally offset by an increase in Chinese corn usage. Ideas of possible larger feed use numbers in the Jan report but also lower exports floating around. Funds long 335 and technically my indicators are bearish. We need some new news to trade on.

Soybeans:  As of 7:30- 9 lower

Report yesterday was neutral to slightly bullish soybeans as the US balance sheet tightened by 10 coming from an increase in crush. Settled lower on spillover weakness from the wheat and corn market. USDA did announce a sale of 115,000 tons of soy to China yesterday and anticipate another strong week of export sales tomorrow which one would think would limit the down side. Funds long 125 and technically I have no real clear direction with support at 14.36 and resistance at 15.30.

Wheat:  As of 7:30- Winter/Spring 1 higher

The US wheat balance sheet grew 50 yesterday on a decrease in exports. This led to a sharp selloff in the entire wheat complex. Ideas of increased feed use in future reports giving this market a shot in the arm now seem remote. We do still have far from ideal growing conditions in the US southern wheat areas. Technically my indicators are bearish both KC and Minneapolis wheat as we broke lower of the range we have been in since July.