November 14, 2013
Producer Marketing Manager
CORN: As of 7:45 – Steady
Funds added to their short position yesterday and conversely added to their long bean position. Still no decision from the EPA on the RFS levels for 2014, but many expect this to come this week. RIN’s (renewable Identification Numbers) are lower this week possibly signaling a lower target from EPA. We should see weekly production numbers out today. South Korea feed group passed on a tender this week citing too high of prices. Below is a map of competing feed grains on a FOB basis across the world. Brazil still has corn for sale…..
SOYBEANS: As of 7:45 – DN 5
Jan beans struggled overnight after failing to take out Tuesday’s highs in yesterday’s trade. News that China purchased another 123,000MT or approx 4.5 million bushels yesterday. Weekly export sales will be out tomorrow due to the Veteran’s Day holiday. Looking at resistance at the $13.23 area which is the 50% retracement off of the early Sept high. Support is right at today's low of $13.05.
WHEAT: As of 7:45 – MPLS UP 3, KC UP 6
Egypt is tendering for wheat again. Their last tender went to the Black Sea region, and most are thinking this tender will as well. Brazil bought at least 60K MT of US HRW yesterday for Dec shipment as well. This was the announcement many have been expecting due to the lack of Argentina crop. Brazil has purchased 3.1 mil MT (114 million bu) for the 13/14 marketing year.