April 18, 2013
Producer Marketing Manager
Big rains across IA, IL, and MO in the past 24 hours (see below Wheat comments). Mississippi River gauges are on the rise and expected to be at minor to moderate flood stages by the first of next week. Below is the comparison of gauge at St. Louis; one on Jan 23rd as we wondered how we would maintain navigable levels, and the other being today’s level and forecasted crest. What a difference 90 days makes!
Corn: As of 7:45 – Old crop Steady, NC up 2
Ethanol production numbers out yesterday were 22,000 barrels per day lower than last week’s strong number. Export numbers release this morning showed decent old crop sales of 16 million bushels. This was towards the upper end of trade expectations.
Soybeans: As of 7:45 – Nearby Up 12, NC Up 5
As mentioned yesterday, sourcing old crop beans is getting extremely difficult which is the main reason for the nearby strength yesterday. The May/July spread strengthened another 6 cents to 42¼. New crop futures were lower on the day as traders seemed to be selling Nov beans and buying Dec corn. Export sales numbers this morning were at at 12.5 million bushels of old crop, the trade was ranging from 4-18. A Chinese research firm is estimating china’s feed demand will slump 20% in Q2 because of bird flu...Poultry product sales reportedly have dropped nearly 70% since the end of March!
Wheat: As of 7:45 – MPLS Up 5, KC Up 4
Wheat markets were steady to lower on the close yesterday after trading higher on continued weather concerns from TX to Canada. In the HRW country the concern is on the cold temps expected Thurs and Friday. There is a chance of damaging freeze impacting the jointed/headed wheat in this region. Decent export sales out this morning for old (20 mill bu) and new crop (41 mill bu) categories were better than expected.