February 7, 2013
Producer Marketing Manager
Winter Marketing Meetings kick off today in Roscoe @ 10am and Aberdeen @ 2pm. Tomorrow we head to Redfield and Huron. Hope to see you there!
Corn: As of 7:50 – Down 4
The corn market continues to slip off of last week’s rally as we continue to take in lack luster demand news. Ethanol run rates were released yesterday and showed a small improvement of 4,000 barrels/day over last week’s large drop down to 770,000 barrels/day rate, but not enough to excite the market too much. Export sales out this morning were near the low end of the guesses at 6.6 million bushels. We need 13.7 million bu/week to his USDA export projections. Tomorrow is the USDA S/D report at 11:00am and average trade guesses for ending stocks are at 618 million bushels, slightly larger than USDA’s Jan number of 602.
Soybeans: As of 7:50 – Up 4
Soybeans closed 8 lower yesterday after testing the $15.00 mark on the March contract in recent days. Argentine weather is still on traders’ minds with some moisture possibilities in the extended forecasts, albeit that is 7-10 days out. Export sales out this morning were huge at nearly 33 million bushels Old Crop (China bought 25.5 million of that) and 28 million bu of New Crop sold this week. Note that China’s Lunar New Year Holiday starts tomorrow and they will be on holiday next week, so they may be overloading this week in lieu of having next week off.
Wheat: As of 7:50 – Mpls Up 2, KC steady
Wheat decided at least for a day that it did not like being called corn, and added 9-10c to the wheat/corn spread shown in yesterday’s wire. There are several trade rumors of new wheat export interest surfacing including talk of SRW sales to Russia. However, wheat export sales this am were below trade expectations at 10.7 million bushels.