January 10th 2012
Drew Johnson
Grain Marketing Specialist


Corn
As of 7:45 am Mar. 2 higher, Dec. unchanged

Corn continued to show some interest yesterday after the ethanol production numbers came out. Ethanol production was up this week, 826 million barrels versus 807 last week. Trade is looking for USDA to up the feed use numbers which could tighten carryout to use ratio baring any number change to a larger crop, or continued slow exports. Also interesting note 3 out of the last 4 years the January report has traded limit down. Corn trading sideways until tomorrow.


Soybeans
As of 7:45 am Mar. a penny lower, Nov. a penny lower

Soybeans tight stocks are keeping this afloat as we keep seeing traders position themselves for tomorrow's report. Trade is also waiting for the main export business to shift to South America. Some early harvest of soybeans is expected down there. Question that is on everyone's mind, will South American logistics be able to keep up with demand on a tight US supply? Soybeans have also traded lower on the January report 3 out of 4 years. Good note that happened yesterday is the announcement of another shipment of 2013 soybeans to China. Soybeans trading sideways until tomorrow.

Wheat
As of 7:45 am Spr. Wheat a penny higher and Win. Wheat 3 higher.

Heavy rain forecasted in some hard red winter wheat areas and a lot of spring wheat areas. This will put pressure on the wheat market. Trade guess for the WW numbers coming out tomorrow is 42.6 million acres. Wheat continues to price itself into the export market. Strength in the short term will depend on world supply, long term will depend on US weather. Wheat trading sideways until tomorrow.