Mar 15th 2013
Grain Marketing Specialist
Corn: As of 7:30- unchanged
Corn market firmer yesterday on better export sales and spill over form the wheat market. Export sales reported at 653 tmt- 282 old, 371 new crop. Corn/wheat spread suggests increased wheat for feed but the anticipation is that the Mar 28th stocks report will show an uptick in corn for feed demand as any wheat feeding would unlikely be represented in this stocks report but would show up later. As you can see in the chart of the corn - wheat spread below they are trading at relative values with corn just a 6c discount to Chi wheat.
Soybeans: As of 7:30- 2 higher
Soybeans pressured again yesterday on export sales on the low end of the expectations and lessening of spillover SA business. Export sales at 783 tmt – 657 old, 126 new crop. This is still far above the 44 needed to meet USDA expectations. Brazilian harvest estimated at 48% complete but logistics still remain a problem. The recent appreciation in the value of the dollar also limiting any significant soybean rally. As you can see in the chart below the dollar index has risen sharply over the past few weeks. Nopa crush to be released this morning with estimates at 140-143.
Wheat: As of 7:30- 2 lower
The wheat market showing a little life yesterday as better than expected export sales helped propel that market. Export sales at a large 1.087 with 888 tmt of old and 198 of new crop sales being reported. US wheat becoming more competitively priced for exports and ideas of increased wheat feeding also giving some underlying support.