Feb 20th 2013
Grain Marketing Specialist
Corn: As of 7:30- unchanged
Corn held in check yesterday unable to follow soybeans higher. Poor export inspection of 9.5 vs 14.815 last week and well below the 20 needed to meet USDA estimates, snow forecasted for much of the Corn Belt and spillover weakness from wheat supporting the move lower. We are still looking to close about the $7 resistance level.
Soybeans: As of 7:30- 14 higher
Soybeans sharply higher yesterday on renewed Chinese interest as they purchased 120,000 tonnes of US 12/13 crop soybeans, large export inspections of 40.384 vs 30.806 the previous week and the 9.5 needed weekly to meet current estimates. Vessel waits in Paranagua are said to be at least 36 days and Port Labor workers are said to be having talks with the Brazilian govt. A port strike would add to an already tight logistical problem as Brazil looks to have a larger crop but if they cannot execute due to loading delays we may see more spillover business to the US adding to an already tight balance sheet. For the morning we look to have follow through strength from yesterday as we trade double digits higher. Resistance remains at 14.95.
Wheat: As of 7:30- 3 higher
Solid export inspection of 30.3 vs the 26 needed to meet USDA estimates was not enough to wheat from sliding lower yesterday as the forecast is looking promising from snow cover over the bulk of HRW country. US wheat prices are starting to look competitive as we hope to pick up additional export business.