September 12th, 2013
USDA WASDE Report out at 11 am!
Corn as of 8:00 am. Dec. 2 lower
Markets are quiet this morning as traders get into position for today's report. Trade estimates a 153 type yield with total production around 13.6 billion bushels. This is down 143 million bushels from the August Report. Adjusted acres will not come out until the October report. China at record corn production. Ethanol numbers yesterday were very good with total of 848,000 vs 819,000 barrels last week. Corn exports this morning are at 332,000 versus 212,000 last year. Corn basis keeps falling as new crop keeps rolling down in the southern states. Robust yields are being reported. Cooler temps this weekend with some rain chances. Support holding at 460 on the Dec.
Soybeans as of 8:00 am. Nov. 3 lower
Soybeans trading a little lower as we wait to see what the USDA has to say. Estimations are at a 41.2 bu yield with total production at 3.15 billion. If numbers like this are confirmed we will see the US have to ration demand to make sure there are enough soybean supplies to keep domestic users happy. On the other hand the oil seed market seems to be in abundance. Some projections that, such a large supply of oil seeds, could push bean futures to 10.50 in the next few months!!!??? This week's export numbers are low with only 17,000 exported versus 67,000 last year. If this report is bullish for beans, and with little new crop sold, we should be looking at making a sale at $13 cash. Futures still supported at 1350 on the Nov.
Wheat as of 8:00 am. Spr. Wheat. 1 higher Win. Wheat. 1 higher
The biggest news for wheat in today's report is possible downward movements of Australian wheat production do to droughty conditions. US exports have been good with total exports this week at 544,000 versus 381,000 last year. Iran wheat imports could reach 7.5 mmt vs the USDA estimate of 4.0 mmt. Wheat to continue to follow corn as long as the hot dry weather persists. Mpls wheat support, for the December contract, at 700 futures. KC wheat support, for the December contract, around 690 futures.