July 12th 2013
Grain Marketing Specialist
Corn: As of 7:45- 2-3 lower
Well the USDA report ended up to be a relative nonevent, trading the report for about 10 minutes and then back to weather. Few changes for the 12-13 crop coming form and increase of 10 to imports and an increase in feed/residual of 50 netting an increase of 40 of ending stocks. 13-14 increased planted acres .1 to 97.4 but decreased harvested acres to 89.1, left the yield unchanged, decreased domestic use and exports each by 50 netting an end result of just a small change of an increase of 10 to the ending stocks to 1959. Announcement of China purchasing 120,000 mt of 13-14 hit the wire yesterday morning. Technically the corn market does look at little better with CU3 resistance at 5.78 and 5.40 for CZ3.
Soybeans: As of 7:45- unchanged to 4 lower
As with corn the report was a nonevent with no changes to the 12-13 balance sheet and the only changes to the 13-14 being a slight increase in planted and harvested acres netting an increase in ending of 30 to 295. There was a USDA announcement of 120tmt 13-14 option origin bought from unknown yesterday. Resistance for SX3 at 12.92 and 13.33.
Wheat: As of 7:45- 3-4 higher
You wouldn’t have guessed by the settlement yesterday but if there was any surprises it would have come from the wheat balance sheets. Wheat ending stock done to 576 vs an average trade estimate of 632 and June of 659. This came primarily from an increase in exports of 100, feed/residual was decreased by 10 and some other minor changes netting a decrease of 83 of ending stocks. World ending stocks also came in lower than expected at 172.4 vs. an average estimate of 180.29 and June at 181.25.