January 7th, 2013
Drew Johnson
Grain Originator

Corn as of 7:30 a.m. Mar. up 2, Dec. unchanged to a penny higher.

We are seeing some bargain hunting this morning as buyers are getting in after last week’s sell off. Corn exports were anything but beautiful last week. Good chances of moisture expected to come into the Corn Belt and western wheat belt this week. Argentina did receive some rains over the weekend, but they were not very widespread. Brazil is now receiving beneficial rains over their dry areas. Funds are long 211,000 contracts, dumping 110,000 these past two weeks. Corn is working to price into the feed, ethanol and export market and is competing with Brazil. Big concern this week will be the January 11th report which will post final yield numbers, supply and demand, US stocks and crop production numbers. Rumors: expecting to see more feed use. Look to see up and down trading on this market until we get some new news.

Soybeans as of 7:30 a.m. Mar. up 8, Nov. up 7

Soybeans are up on buying interest ahead of the January 11th report.  Export numbers last week were lower than expected, count that up to the short holiday week. Beans exports and crush still remain ahead of current USDA projections, which, you would expect to believe, would make the market have to ration demand early this spring. The wild card to that would be if the South American crop production is tremendous. This would allow an even distribution of hemispheric supply. However dryness still remains in the US and there are still some rains in Argentina. Brazil seems to be getting favorable weather and if this weather pattern continues Brazil will be the biggest producer of soybeans.  Expect soybeans this week to be choppy as traders continue to understand value. The 11th report will give us news to go on.

Wheat as of 7:30 a.m. SW up 3, WW up 4

Wheat exports are disappointing. Exports down 60% from the previous week. Wheat is trying to price itself back into the export market. Dryness still apparent in the HRW belt. Time will be the change in the market. Expect sideways trading until we get some new news here to.