September 4, 2014
Grain Marketing Specialist
Reminder: Any NC wheat brought in this year and placed on Direct Dp is free until tomorrow, September 5th
CORN – Down 1
The improved condition rating on Tuesday night spilled over into Wednesday’s trading session as funds were sellers of 10,000 contracts. Funds are now short 20,200 contracts. Private estimates for corn yield still are coming in high, anywhere up to 175 bpa thus far. Many analysts at this point are trading the idea of the USDA upwardly revising the corn yield closer to 171 bpa. Technically, corn tested and broke through the December contract low of $3.58 and made a new low of $3.5125.
SOYBEANS – Down 3
The negativity in the market place on Wednesday was mostly from the two point increase in crop conditions from Tuesday night’s report. Even with the down day yesterday we still closed 8 cents above the low for November futures. Funds were sellers of 7,000 soybean contracts on Wednesday, increasing their short position to 75,000 contracts. New crop cash beans are still around $9.30 cash at most Wheat Grower locations. Fundamentals still aim for a large crop at this point with condition ratings improving, 84 mln projected planted acres and a projected 45 bpa yield.
WHEAT – Kansas City Up 4, Minneapolis Up 1
Extended weather forecasts at this point look to aid harvest progress in the Dakota’s as we attempt to wrap up wheat harvest here in the next 10 days. Fund selling has pressured the market this week, with the funds now short 77,100 contracts. In a tender offering yesterday Egypt bought 60tmt from France and 60 tmt from Romania. Technically, support is yet to be found in both the December Minneapolis and December Kansas City contracts as we broke through contract lows on Wednesday.