February 20, 2014
Grain Marketing Specialist
Corn – Down 2
Funds have been buyers of 30,000 contracts in the last three days, building a long position heading into the spring and summer months. Corn exports recently have remained strong, now 85% sold against the USDA export forecasts for the month of February. Technically, December 14 futures are pushing up against nearby resistance at $4.70 futures, this is $4 cash NC corn at most Wheat Grower locations! Through yesterday’s close the average Feb Crop Insurance Revenue Pricing is at $4.59 Z14.
Soybeans – Down 5
March Soybeans reached up to $13.7175 yesterday before closing the day 7 lower. Gulf and South American basis levels yesterday seemed to have a weaker tone, down 5-10 cents for the day. Funds are now long 185,000 contracts, buying an additional 30,000 contracts since last Friday.
Wheat – Down 1
U.S. wheat is becoming uncompetitive in the world export market due to high basis levels, possibly changing the dynamics of the next USDA S&D report. Rail concerns are also being felt to the north, where Canada still has a large amount of wheat to move. Texas wheat is currently rated at 17% Good/Excellent versus 14% a year ago.