January 8, 2014
Producer Marketing Manager
CORN: As of 7:45 – Steady
We traded through the 20 day moving average on the March contract yesterday, but couldn’t manage to close above it. Funds start rebalancing their positions today and continue into next week on the roughly 90,000 contracts they need to buy. Logistics are still snarled as cold temps keep trucks off the roads and the BN is still underperforming, to say the least. Their turn times are terrible (half speed at best) and that is reflected in shuttle train values….yesterday a Jan BN shuttle set traded at $3,200/car ($0.75/bu+). Typical values for this time of year would be around $0 to $150/car!!!
SOYBEANS: As of 7:45 – Down 5
Despite a sizeable export sale of 350,000 tmt soybean sale to China for this marketing year, the bean market sputtered on the day and we are seeing follow through weakness in the overnight. The market is anticipating a larger production number for 2013 and is weighing a stronger demand scenario against the larger crop……should be interesting.
WHEAT: As of 7:45 – MPLS and KC Up 3
In Friday’s USDA report, the trade expects 43.5m acres total winter wheat, vs. 43.1 this past year. Brazil is reportedly looking for more HRW. Logistics are hampering the domestic milling supply chain as well and if you can ship, bids are firm.
January Crop Production, Winter Wheat Seeding, and Quarterly Grain stocks reports will be released Friday, Jan 10th @ 11:00 am.