March 13, 2013
Producer Marketing Manager
Corn: As of 7:45 – Up 1
Corn market was higher for a third straight day as funds were buyers of around 6,000 contracts. The trade is focused on the March 28 Planting Intentions and Stocks Report (as of March 1). For old crop’s sake, what will March 1 corn stocks be? Have we fed more than anticipated? Weekly ethanol production numbers are due out this morning from EIA.
Soybeans: As of 7:45 – Down 10
Beans were the weakest link yesterday closing 10¾ cents lower, mainly due to profit taking as the funds were sellers of 5,000 contracts. Some talk in the trade that the market was still reacting to poor export numbers from Monday, although the reality is that sales and shipments need to slow down dramatically if we are going to achieve the projected 125 million bushel carryout figure. NOPA crush numbers will be out on Friday and most in the trade are looking for a modest gain in year to year crush.
Wheat: As of 7:45 – MPLS Down 1, KC Steady
Not a lot of fresh news in the wheat markets today. Yesterday we had some weakness in the MPLS and KC markets on better weather and an increase in farmer movement. Chicago Soft Wheat prices were higher as it moves in tandem with corn futures. The May SRW/Corn spread made new lows today, closing at -11.25 as seen in the chart below. The question is how much can move into the SW feedlot market?
What to watch for: USDA Planting Intentions and March 1 Stocks Report released March 28th, AND the Jackrabbit Men and Women in the NCAA Tournament!