September 6, 2013
Producer Marketing Manager
Informa economics is scheduled to release their estimate of the Sept 12 USDA report this morning. Rain chances look fairly light for the next 5 days, except for the far northern plains.
CORN: As of 7:45 – UP 3
Weaker again yesterday as the Dec contract closed 8 ½ cents lower on weak cash basis levels for what is left of the old crop corn as well as better than expected corn yields coming out of southern IL, IN, and SE IA as the harvest of the early planted corn moves north. Ethanol production rates were just a tad lower than the previous week at 819,000 barrels per day (820 last week). West coast imports of ethanol bumped up this week at 37,000 barrels/day, versus just 4,000 last week. Export sales out this morning were less than expected at 12.9 million bu of 13-14 crop and larger cancellations of the 12-13 crop (-4.5 million bu).
SOYBEANS: As of 7:45 – UP 7
Beans traded lower yesterday as they tried to fill the gap ($13.315 - $13.415) left from the big run up a couple of weeks ago. It traded down to the $13.35 level before finding some buyers which pushed us to close 15 cents higher on the day. Will we make another run at the contract high of $14.095? Funds were buyers of an estimated 8000 contracts yesterday. New crop soybean sales were larger that trade guesses at 31 million bushels on the week with, you guessed it….China taking 22 of the 31.
WHEAT: As of 7:45 – Mpls UP 3, KC UP 4
Minneapolis wheat made new contract lows yesterday, closing down 10 ¾ cents and the lowest we have been on a continuous chart since November 2010. The main theme coming out of ND is that the HRS crop is yielding well, but protein levels have been on the low side. Wheat sales were good this morning at 24.6 million bushels as the trade was expecting 15.6 – 22.0. Most of this was HRW (15.1) followed by SRW (6.2).
What to watch for: USDA WASDE report is out next Thursday, September 12th.