March 12, 2013
Producer Marketing Manager
Corn: As of 7:45 – Up 1
Yesterday corn enjoyed follow thru buying from Friday’s gains and closed 8 higher on the May contract, the highest we have traded in over a month. Export inspections were toward the upper end of the trade expectations at 14.4 mbu (10-15 mbu). In addition to feeders already sourcing wheat to feed, we continue to hear chatter that eastern and southern ethanol plants have also took notice of the corn/wheat price relationship and are exploring ways to include wheat as a cheaper feedstock alternative.
Soybeans: As of 7:45 – Down 8
Beans were firmer yesterday as heightened concerns over Brazilian port delays (still +40 days for a boat to wait) have traders on edge about more business swinging back to the US for quick-ship soybeans. Quietly, 75% percent of beans have been harvested in Mato Grosso; 50% of total Brazilian soybeans have been cut. Export inspections of 17.1 mbu, were well below the trade expectations of 30-40 mbu – are we seeing the start of the slowdown and switch to S American supplies?
Wheat: As of 7:45 – MPLS Steady, KC Down 2
Wheat export inspections were well over trade expectations (19–25 mbu) at 27.9 mbu for all wheat, with Soft Red and Hard Red making up the bulk of that number. Shipments by class: SRW = 14 mbu, HRW = 8.5 mbu, HRS = 2.7 mbu and SW = 2.6 mbu. With the uptick in moisture across the southern plains, Kansas HRW conditions released yesterday rated at 27% good/excellent, up 3% from a week ago. Oklahoma good/excellent pegged at 20%, up 5% from a week ago.