Jan 22nd 2014
Grain Marketing Specialist
Corn: As of 7:45- 2 higher
Corn managed to hold on to 1c gains in to the two front months despite the selloff in beans. Corn was supported by solid export inspections of 29.8 million bushels, exceeding trade expectations. Funds estimated buyers of 3000 contracts. Both Celeres and SAFRAS lowering their Brazilian corn estimates from Dec but both are still larger than USDA estimates. This market is in need of new fundamental news and looks to be trade range bound until it gets some. Support at 4.18 and resistance at 4.40.
Soybeans: As of 7:45- 4 lower
Weekend precip and a better forecast for Argentina along with rumors that 2 to 3 cargos had switched origin from US to Brazil for LH Feb fed a significant sell off in soybeans yesterday. Mar beans 36 lower yesterday. Funds estimated sellers of 11,000 contracts. Export inspections at 56.6 million bushels which was within the range of estimates. SA soybeans still could net record production and the idea of that displacing US beans will continue to loom over this market. Trend line support at 12.70.
Wheat: As of 7:45- 2-3 higher
The path of least resistance still seems to remain lower as all three wheat’s closed modestly lower yesterday. There is still concern of winter kill for areas that lost snow cover. With corn priced where they are it seems unlikely that you would see any additional wheat work into feed channels. Export inspections at 15.6 million bushels falling short of the expected range.