November 18th, 2013
Drew Johnson
Grain Originator

Corn as of 8:00 am, 4 lower

Last Friday the EPA announced its proposed rule for the 2014 RFS. They suggested 15.21 billion gallons of renewable fuel. This proposal will likely be challenged by the ethanol industry as we get closer to the New Year. Traders will try to decipher what the proposal really means going ahead.
Export sales numbers last week were well above expectations. The numbers came in at 47.36 million bushels. Export shipments were not as good with those numbers only coming in at 18.26 million bushels. Basis is getting better along the river as buyers are trying to find corn to fill commitments. This is an interesting task as farmers seem content with holding corn in the bins. Support on the December contract is at $4.15 futures and resistance at $4.40 futures.

Soybeans as of 8:00 am, steady to 1 higher

Soybeans are steady this morning following the big sell off on Friday sending futures back below $13.00. Export sales numbers came in right where they needed to be at 31.18 million bushels. Crush numbers were over exceeding the expectations at 157.1 million bushels. These numbers, as we saw, gave no help to the falling market on Friday. As we look at the chart below, it seems, to me, that there is an emotional level at the thirteen dollar mark. We will keep trading in the box of $13.25 and $12.50.

Wheat as of 8:00 am Mpls Wheat, steady.   KC Wheat, steady.

Wheat turned lower as export sales came in weak, last Friday, at 10.61 million bushels. Shipments were only at 14.07 million bushels. Winter wheat conditions seem to be improving in the US. Weather in southern hemisphere is seen as favorable for harvest.