August 1, 2013
Producer Marketing Manager
Corn: As of 7:15 – Nearby Down 3, NC Down 5
Nearby ethanol margins improved yesterday as ethanol price outpaced corn higher yesterday. EIA report out yesterday showed a drop in production by 20k barrels from the previous week. This is the 3rd straight weekly decline in production. Old crop basis levels seem to be firming following last week’s drop. Export sales out at 7:30 are estimated at -2 – 7 million bushels of Old crop and 18-28 million bushels of new crop.
Soybeans: As of 7:15 – UP 2
Another sale of 120k tons of NC soybeans was announced to “unknown” yesterday. Similar to what we see in old crop corn, end user values are improving after selling pretty much dried up after last week’s slide in basis and futures price. Report by Brazil’s Ag Rural that they expect soybean acreage up by 6% in 13/14. Export sales are estimated at -4-5 million bushels of Old crop and 18-26 million bushels of new crop.
Wheat: As of 7:15 – Mpls Steady, KC Down 3
Both Mpls and KC were higher yesterday. Some chatter out of Australia of dry weather affecting the growing crop……isn’t is always dry in Australia? Japan bought some Western White wheat from the US for the first time in 10 weeks. They had been on hiatus after the RR resistant volunteer wheat was found in a PNW farmer’s field. Wheat export sales out at 7:30 are expected to be solid at 18-26 million bushels. We did 24.3 last week.