Sep 18th 2013
Grain Marketing Specialist
Corn: As of 7:45- unchanged
Corn traded mixed yesterday as traders got all excited off the FSA data but then realized later that there is little correlation to actual acreage. I know I am sounding like a broken record but better than expected early yields look to keep this market on the defensive. Now we will have to wait to Oct for USDA data to see how the PP acreage is incorporated into the balance sheet. The anticipation is for higher yields and possibly lower harvested acres. Light farmer selling was noted buoying things a bit. Technically I continue to look for initial support at 4.45 ¾ as all three of my indicators remain bearish.
Soybeans: As of 7:45- 6 lower
FSA data helping the bulls yesterday was offset by idea’s that moisture is helping later beans. We will have to wait and see how the FSA data flows into the USDA balance sheet as an already tight scenario cannot afford to lose any more production. Chinese signed contracts to purchase 177.4 million bu’s of US soybeans- exciting but not as they will purchase far more than that. Nov beans toyed with the idea of filling the gap but stopped just short. I continue to look for initial support there at 13.31 ½ followed by 13.15 with resistance at 14.09.
Wheat: As of 7:45- 1 higher
The wheat continues to chop around and drift lower. We are struggling with the tail end of harvest pressure, better Canadian crop and over priced globally. Continued talk of beneficial rains for the HRW crop adding acres and favorable to development. FSA PP data may have marginally helped HRS market