March 13, 2014
Producer Marketing Manager
WHEAT: As of 7:45 – MPLS UP 7, KC UP 4
I’m changing things up a little and am going to lead with Wheat since that was the market leader yesterday. The funds were wanting to own wheat yesterday and they did by buying over 12,000 contracts of Chicago wheat alone. Continued unrest in Ukraine as well as the concern of what the US HRW crop is going to look like coming out of dormancy has some risk premium into the market. Export sales out this morning were solid at 17.5 million bushels. The MPLS May contract is the highest we have seen since early Nov.
CORN: As of 7:45 – Steady
Treading water as beans go down and wheat surges higher. Railroad logistics that are hampering grain shipments are also hindering ethanol car movement as well and have some plants slowed down due to the lack of railcars. Yesterday’s weekly EIA showed ethanol production dropping to 869k barrels, down 25k from last week. Export sales were as expected at 26.9 million bushels.
SOYBEANS: As of 7:45 – Old Crop UP 1, NC UP 5
Tough day yesterday, especially on old crop futures as rumors continue to circulate about China’s cancellation of US and/or Brazilian beans. Basis has been dropping steadily at the Gulf as well as in Paranagua, possibly lending some support to this. CONAB dropped their Brazilian soybean production estimate to 84.5 MMT from their FEB estimate of 90 MMT. We did sell another 4.2 million bushels of old crop per the report this morning, below the range of expectations, but did sell 28.5 million bushels for next year.