February 17, 2014
Grain Marketing Specialist
Reminder: No markets today due to President’s day. The markets will re-open this evening at 7:00pm.
Last Monday’s USDA report brought us a tighter carryout number for old crop corn, lowering the carryout number to 1.48 bln bushels. This kept March futures above the nearby support level of $4.40 CH14. We have now closed above $4.40CH14 nine days in a row. We seem to have found a range in the short term for nearby corn with $4.49 CH14 showing for nearby resistance. Be sure to have targets in place to capture what could be $4 cash corn if we find ourselves trading higher in the range!
The big news last week in beans was the close we had above $13.40 SH14 on Thursday, which had been showing strong resistance the last couple weeks. The USDA report last Monday showed carryout at 150 mln bushels, which was the same number reported in January’s USDA report. Friday’s close left us right at or close to $12.50 cash beans at most Wheat Grower locations.
We continue to rally nearby futures for Spring and Winter wheat from our January 31 lows. Since January 31, winter wheat has rallied 60 cents and nearby spring wheat has rallied 50 cents. The USDA report last Monday brought bullish news to the wheat market as ending stocks were cut 50 mln bushels.