December 21, 2012
Producer Marketing Manager
Corn: As of 7:45 - Up 5
Corn was lower yesterday on weakness in soybeans as well as continued poor export sales numbers. Argentina’s Ag Ministry reduced their expected corn acres by 400k hectares (approx 1 million acres) as corn planting remains delayed and continued rains look to impede progress. It is estimated that 74% of the crop has been planted compared to 83% a year ago. USDA Cattle on Feed is released this afternoon and is expected to see lower numbers of cattle placed into feedlots. On the technical side of the market, we traded below the psychological level of $7.00 on the March contract for the first time since July 11th – it will be interesting to see if we can maintain that level in the next few trading sessions. Watch the Dec 13 contract as we hover right above the $6.00 level!
Soybeans: As of 7:45 - Up 13
Another day, another beating in the soybean complex yesterday with nearby soybeans down nearly 30 cents for the third consecutive day yesterday mainly on news that China had cancelled 540,000 metric tons of soybeans early in the day to go along with the 310,000 metrics tons that were reportedly cancelled on Wednesday. Export sales released yesterday morning were lighter than expected at 22.8 million bushels, the trade was expecting 24-31 million bu. So far this morning we are seeing the market bounce back up on some profit taking of oversold conditions. Technically we are holding the $14.00 area on the both the Jan and March contracts. Below is a weekly chart of the Jan contract showing the trendline support we have been seeing the market holding.
Wheat: As of 7:45 - MPLS Up 3, KC Up 3
Wheat was lower yesterday in tandem with corn and the soy complex. Starting to see more business come our way as Egypt bought more Soft Red Wheat from the US this week in addition to some Hard Red Wheat. Southern plains continue to be dry although seeing some precip this past week as the winter storm raced through and dropped significant snow from NE/KS eastward. We continue to trade below the sideways range set at harvest time.
Note on Christmas Hours: The market closes at Noon on Monday and will reopen Wednesday morning at 9:30. Wheat Growers locations will be open until noon on Monday.