November 20th, 2013
Drew Johnson
Grain Originator

Corn as of 8:00 am, 1 lower

Corn values saw some rebounding yesterday. Funds short 87,000 contracts. They need to get December contracts down to 600 in 7 days before first notice day. There are more than 100,000 Put options at the $4 level that will expire this Friday. Weekly ethanol numbers come out today. We will see if production stays up. Looking at the chart below overall trend remains bearish. 

Soybeans as of 8:00 am, steady.

Soybeans fell yesterday as trade sorts out balance of old crop and new crop. What do we have versus what South America has? USDA announcing 8.82 million bushels of 2014/15 SB’s sold to China. There is some talk out there that China may cancel a few of this year’s cargoes of US soybeans for cheaper South American soybeans. Bean harvest is at 95%. South American weather is seen as favorable for soybeans. Support at $12.50.

Wheat as of 8:00 am, Spr. Wheat, 1 lower.     Win. Wheat, steady.

Wheat was up yesterday. Japan purchased more wheat in their weekly tender with 1.9 million bushels thought to be US wheat. Winter Wheat, in the US, is at 63% good to excellent. Emergence is ahead of average at 89% in the winter wheat growing areas. Weather concerns for the southern hemisphere might give these markets a boost as harvest continues down there.