November 19th, 2013
Corn as of 8:00 am, 2 higher
Corn trying to bounce back a little this morning after loses yesterday. News that China rejected a load of corn after it tested positive for a non-approved GMO. The RFS proposal, with total renewable fuel poised at 15.21 billion gallons, implies ethanol production at 13.0 billion gallons. This is below the 10% blend wall number of 13.3 billion bushels, and very much below production this year, which is stated to come in at 13.8 billion gallons. If these numbers are realized corn demand will drop. Export inspections that came out yesterday were very good at 30.46 million bushels. This is 139% ahead of last year, but still under the 10 year average. Crop progress report yesterday has corn harvest at 91%. Trade will continue to decipher supply and demand issues. We are holding support around $4.15 on the board.
Soybeans as of 8:00 am, 1 lower
Soybeans bounced back a little yesterday with good news on export inspections. Export inspections were at 87.80 million bushels. Crop progress yesterday has 95% of the soybeans harvested. Weather news in South America is seen as favorable. As long as demand remains soybeans will be range bound between $12.50 and $13.25.
Wheat as of 8:00 am, Spr. Wheat, 2 higher. Win. Wheat, 4 higher.
Wheat seeing some turn around this morning as yesterday’s crop condition report actually dropped winter wheat conditions nationwide by one quarter of a bushel per acre. Export inspections numbers yesterday were at 18.11 million bushels. Wheat is now feeling pressure from southern hemispheric harvest as that hits the market.