November 13, 2013
Producer Marketing Manager
CORN: As of 7:45 – UP 2
Corn was steady to lower on the close yesterday as funds were once again sellers of an estimated 6,000 contracts. Harvest progress showed 84% of the crop harvested for a 11% increase from last week. Only MI, WI and ND are less than 70% complete at 62,62 and 64% done respectively. The corn market is watching and waiting to see what the EPA will do with the 2014 RFS requirement level. In other news, Goldman Sachs lowered their 12 month price outlook on corn from $4.25 to $3.75 and also dropped projections for corn planting to 92.5 million acres for the upcoming year. Below is the Dec corn chart with some retracement levels. We continue to find resistance at the 20 day moving average as well as the 23% retracement level off of last week’s lows.
SOYBEANS: As of 7:45 – DN 6
Beans led the way higher yesterday on strong export inspections of 79.7 million bushels, 72% of those loaded were destined for the People’s Republic of China. Also yesterday it was announced that China purchased more US soybeans. Planting progress in S. America is coming along and weather is generally beneficial. Matto Grosso, the main soybean growing state in Brazil, is reportedly 86% complete with planting and Argentina is just getting started and is in the mid-teens. Yesterday we traded thru and closed above the recent high of $13.1275......this morning we are back below that mark....
WHEAT: As of 7:45 – MPLS UP 1, KC UP 2
Export inspections released yesterday at 12.2 million bu were just above the top end of market expectations and below the 16.9 million bu needed to ship weekly to reach USDA’s annual projection on exports. Additional tenders looks to be slow this week as well. Winter wheat conditions released yesterday show the crop doing well going into dormancy.