February 6, 2014
Grain Marketing Specialist
Corn: 1 Higher
Corn looks to start out slightly higher this morning. We have had a nice little counter rally in corn recently; cold weather and generally poor conditions have curtailed movement. Markets generally follow the path of least resistance, and for now than means up.
Soybeans: 1 Higher
Beans are slightly higher this morning following yesterday’s wild action. It really is a mixed bag as China is still on New Year Holiday/confirmations of export cancellations, SA logistics, Argentine farmer hoarding/government intervention to force sales, and weather/logistics inflating basis or pulling back values if loadings aren’t feasible…..all of this is making it hard to find “market value of beans. But for now we are moving higher so enjoy the ride while it lasts.
Wheat: Spring 4 Higher, Winter 1 Higher
The mills want wheat so both basis and futures are reacting higher to meet that demand. Poor freight logistics and the widespread inclement weather have slowed movement to the point mills are jumping back into the market to secure supplies. Market had a choppy day starting with a firmer overnight trade lead in part by light short covering (funds noted buyers of 3k SRW) and noted concern/chatter about potential winterkill as a new round of severe cold hits the US. Forecasts calling for lows below zero hitting as far south as Southern KS/Oklahoma border. The recent round of snows/rain that have fallen in the past 24 hrs is not only a much welcome/needed moisture event in the plains, but will help insulate much of the crop from extreme cold/winterkill. Some early long range weather forecasts are throwing around the potential of an El Nino developing this summer - good for the Central US but would tend to cause extreme heat and dryness in Australia.