January 8th, 2013
Grain Marketing Specialist
Corn as of 7:45 a.m. Mar. unchanged, Dec. 2 lower.
Markets were up yesterday, led by soybeans, as we got to see some speculation on possible shortness in old crop stocks. Export inspection report came out yesterday. Let’s just say they were far from extravagant. We did see some 4 million bushels bought by an unknown buyer yesterday morning. So it kept the corn market up there. This morning we are seeing some mixed trade in the corn market as values relax after yesterday’s gains. 2013 old crop stocks looking to remain tight this year, which should produce a stronger basis in the upcoming months, but do not expect big rallies without some bullish news on either exports or drier weather. Trade is continuing to take interest of drought in the western Corn Belt. Interesting thought. is trade expecting abandonment of WW acres? The weather in South America is favorable. We sit and watch the trade position themselves for Friday.
Soybeans as of 7:45 a.m. Mar. up 1 to 2. Nov. a penny lower.
Solid export inspections yesterday fueled this market as soybeans ratcheted higher bringing the rest of the commodities with it. Current exports are at 255 million bushels ahead of last year and very well ahead of the USDA’s pace. Could market be trying to refocus on tight old crop supplies? Brazil/Argentina weather is favorable. There are some rains going through Argentina right now, however the rest of the week seems to be clear. Brazil receiving good rains which will keep the pressure on the bean market because of potential South American record crop. Same as the corn we wait and watch.
Wheat as of 7:45 a.m. SW up 1, WW up 3
We got to see wheat bounce a little yesterday of continued fears of persistent drought and speculation of abandonment if the weather should stay dry. Export inspections were better, but still lagging. We seem to be seeing wheat trying to price into the export market. Possible renewed interest in US wheat because of recent lower prices. New crop could have some potential in 2013 should drought continue.