January 3, 2012
Producer Marketing Manager
Corn: As of 7:50 - Down 4
Yesterday’s early enthusiasm following the fiscal deal in Washington quickly faded for Ag commodities with most trading lower on the day. We are seeing that follow through this morning in Corn and Soybeans, however Wheat markets are higher. Yesterday we posted an outside day lower on the charts, meaning we traded higher than the previous day and finished by closing lower than the previous session. We are trading near the gap we created back on July 3.
Soybeans: As of 7:50 - Down 11
Beans closed down 23c yesterday on favorable South American weather after posting initial gains of 26c on the open. Soyoil found support with a 1-yr extension of the $1/gallon tax credit. Most soybeans across S Brazil/Paraguay adequately moist with some local spots of too much or too little moisture. Wet weather is still hampering the last 18% of Argentina’s soybean planting. Mississippi River levels and flow are still crucial to the ongoing soybean export program. The Army Corps of Engineers reported yesterday that 25% of the rock had been removed south of St. Louis and should wrap up removal by Feb 1st. However levels continue to decline and may force the river closed in Jan.
Wheat: As of 7:50 - MPLS Up 2, KC steady
Wheat was the leader down yesterday. HRW areas received a little moisture this past week, but still remains stressed. Export sales are out tomorrow – hopefully better than last week’s dismal numbers.