Feb 19th 2013
Grain Marketing Specialist
Corn: As of 7:30- unchanged
Corn managed to stop a 11 session losing streak Friday posting modest gains on oversold conditions. SA received decent precipitation coverage over the weekend with more in the forecast keeping this market in check. Trade anticipating Ag Forums NC s/d forecast Feb 21-22. Funds long 218,000. Look for support at 6.79 and resistance at 7.13 and 7.34. All three of my indicators remain bearish.
Soybeans: As of 7:30- 20 higher
NOPA crush number out on Friday at 158.1mbu vs estimates of 157-162.3mbu and Dec at 159.8mbu. Soybeans managed to close firmer in spite of a report of 250,000mt soybean cancellation. For today it appears as if the Chinese are back from holiday. Trade watching SA loadings as they try to handle a large Feb/Mar book. Funds long 129,000. Technical indicators have yet to turn bullish. Look for resistance at 14.95 and support at 14.00 and 13.52.
Wheat: As of 7:30- 1 lower
More and more rumblings are surfacing about increased wheat demand but little being confirmed. Until it is confirmed we look to continue to trade at values relative to feed. China may be looking to US for wheat. Ideas of India exporting as much as 5mmt. Some precipitation seen for most of Oklahoma and parts of Texas seen with little to no accumulation for Nebraska and Kansas. 6-10 forecast looks promising calling for above average moisture for the eastern Corn Belt stretching into HRW wheat country and the Western Corn Belt. For the morning we look to be choppy with all three exchanges trading around unchanged. Technical indicators remain bearish with support for Minneapolis at 8.08 and resistance at 8.47 and for KC look for support at 7.70 and resistance at 8.15.