July 11 2014
Grain Marketing Specialist
Supply and Demand and Production report today at 11 AM
Corn:1 or 2 better
Another day of spec selling and unimpressive exports made for a tough day in the corn markets. New contract lows were seen across the board. With the S&D and production report at 11 today the market is expecting the following: 2013/14 carryout to incease to 1.23bb from 1.14bb, 2014/15 carryout is expected to be 1.77bb from 1.72bb. As far a yeild goes there as been whipsers of 170bu+ in areas. So this crop has potenial to be BIG!
Soybeans tried to stay postive after a good overnight session yesterday but quickly lost steam, and we saw double diget loses again with Nov and Jan losing due to the idea of such a large crop and ideal weather.First time since Jan, Nov closed below $11.Beans were firm again last night tying hard to find a buyer. With the report this morning, USDA plans to add the 84.8 mill acres to the 2014/15 balance sheet, which alone will increase the carryout. Estmaited carryout for 2013/14 seems to be around 128mb and 2014/15 around 418mb.
Wheat remains the follower again, as wheat followed the row crops down. Chicago again sees new contract lows with KC and Minny lower as well with new lows in its sight. The market will start to pay attention to weather in Austriala as they finish up planting. Also the black seas are starting their harvast season. As for the report, trade is estmaited to be around 591mb for the 2014/15 carryout versus 574mb on the June report.