February 6, 2013
Producer Marketing Manager
Reminder – Winter Marketing Meetings are Thursday and Friday. Click here for more information.
Corn: As of 7:50 – Down 7
Corn futures closed lower yesterday on weakness in the wheat markets and continue to see follow through weakness this morning. Canadian Dec 31 stocks released yesterday also showed increased corn stocks in addition to the lower wheat stocks mentioned yesterday. The trade is eyeing Friday’s USDA Supply/Demand report to see if exports projections are lowered and the subsequent impact to ending stocks. Will have average trade guesses tomorrow. Also watching ethanol production numbers due out this morning. FYI - February average for 2013 Crop Insurance after 3 trading days is $5.929.
Soybeans: As of 7:50 – Down 13
Yesterday soybeans shook off the weakness seen in the corn and wheat pits and the March contract proceeded to close at its highest level since November 2nd. Mainly due to weather concerns at temps hit 100 degrees in northern parts of Argentina yesterday. Analyst estimates for Friday’s report are starting to surface and average guesses for US ending stocks is at 129 million bu which is down from USDA’s 135 Jan number.
Wheat: As of 7:50 – Mpls Down 5, KC Down 4
Not sure if corn weighed on wheat yesterday or wheat weighed on corn? Regardless, we are pricing both as feed grains and the premium that wheat has held over corn price has faded quickly as wheat prices itself into rations. India is also making news as they look to export more of their surplus stocks of wheat. Below is the chart of Chicago Wheat (Soft Wheat) versus Corn.