Feb 22nd 2013
Grain Marketing Specialist
Corn: As of 7:30- 2 higher
USDA releasing some preliminary numbers out of AG Outlook Conference yesterday of 96.5 million acres of corn with 1.453 billion bu’s of production. Weekly ethanol production up slightly to 797 vs 789 last week, but that wasn’t enough to muster a higher close. The corn market is in desperate need for some new bullish news to add support. Export sales this morning at 361.8 for 12/13 and 20.1 for 13/14. Technical indicators remain bearish with support at 6.90 and 6.79 with resistance at 7.00 and 7.13.
Soybeans: As of 7:30- 12 higher
Another round of export sales announced yesterday supported the soybean market yesterday for a higher close for the 4th straight day. 130tmt announced sold to unknown with 75 being oc. Unknown thought to be China with earlier ideas of them purchasing an addition 400 this week. 6 hr strike scheduled for today and Tuesday by Brazilian port workers. The question is will this be resolved or will this further the logistical issues they are having there pushing more business to the US. Last night we pushed through the $15 mark for the first time since Dec 17th. Export sales this morning below estimates at 119.5 for 12/13 and 62 13/14 vs expectation of 300-600tmt. Assuming we close above $15 the next objective would be 15.41 with support at 14.70.
Wheat: As of 7:30- 2 higher
USDA announced a sale of 110tmt of SRW and continued talk of Chinese business was not enough to hold wheat up yesterday. Snow fall over much of HRW country pushed the market lower yesterday with KC leading the way 20c lower. Outlook Conference having wheat acres at 56 million acres vs 55.7 ly and production at 2.1 billion vs 2.269 ly. Weekly export sales this morning at the high end of expectations at 699.3 for 12/13 and 56.6 for 13/14 vs estimates of 400-600.