March 14, 2013
Producer Marketing Manager
Corn: As of 7:55 – Steady
May corn futures closed 4 lower yesterday after trading down near $7.00 early in the session. Weekly ethanol production released yesterday was down 5,000 barrels/day at 797,000. This run rate equates into 4.4 billion bu of corn demand annualized. Rumor that Mexico cancelled corn purchases, substituting with SRW. Interesting to note that India sold 13,700MT of corn to China, a test run for now? Weekly export sales out this morning were at the lower end of trade expectations at 282,000 MT.
Soybeans: As of 7:55 – Down 6
Similar to Tuesday’s trade, soybeans were again the weak leg as they closed 21 ¾ cents lower. Main drivers were the Brazilian harvest progress that we mentioned earlier in the week, China possibly cancelling some soybean purchases, as well as Brazil eliminating some tax credits on a basket full of commodities. Domestic refined soy oil was one of them and with the tax credit gone, it makes the export market a better sale for the Brazilian crusher.
Wheat: As of 7:55 – MPLS Up 2, KC Up 2
Both MPLS and KC were steady to a little higher yesterday as both markets look for direction after stabilizing from the large slide. Worldwide we hear India in talks with Egypt on wheat sales as India is dealing with swelling wheat stocks. As mentioned above in the corn section, US wheat is flowing toward feed channels. Wheat exports were above expectations at 888,000 MT.