February 27, 2014
Producer Marketing Manager
CORN: As of 7:30 – Down 3
Corn traded both sides of unchanged yesterday before closing slightly lower. The rally early in the day was supported by USDA announcement of 101,600 MT of old crop corn sold to unknown. Ethanol production released yesterday was up 3,000 barrels per day for weekly output of 905K barrels/day. Weekly export sales out this morning were good at 33.1 million bushels, just above expectations of 19-31.
SOYBEANS: As of 7:30 – Old Crop Up 8, New Crop Steady
Nearby bean futures were firmer yesterday and we have eclipsed the $14.00 mark on the May futures and are making new contract highs this AM. Rains forecasted for Central Brazil looks to hamper harvest efforts there. Is the pipeline staying full enough to continue loading at the pace China demands???? Despite the nearby futures running up thru technical resistance, the NC has not been as successful around the 11.74 area….. Export sales this morning were at 12 million bushels of old crop, and 11.6 million bushels of new crop which is right on with the trade guesses.
WHEAT: As of 7:30 – MPLS Down 5, KC Down 7
All three wheat markets were lower yesterday, led by Chicago and KC markets. Momentum seems to be waning a little after the 60-80 cent rally (depending on market) that started at the end of Jan. Export sales out this morning came in at 13.4, which is within trade expectations of 11-18. HRS was actually the leader of the wheat classes at 5.5 million bushels sold.