October 24, 2014
Matt Erickson
Grain Marketing Specialist

CORN – Up 4
Corn closed strong on Thursday with more fund activity throughout the trading session. Weekly export sales were reported at 1.031mmt, which was above expectations for the week. Technically, we did settle just above our old resistance level of $3.58 CZ14 but below the top side of our trading range at $3.61. Funds were buyers of an estimated 8,000 contracts during Thursday’s session. The December contract low of $3.1825 looks to be safe with the recent rallies. Keep an eye out for Monday night’s crop progress report where we may see corn somewhere in the neighborhood of 40-45% complete. We are still showing excellent cash carries on the bid sheet with cash closes yesterday of around $3.20 cents for July delivery at select WG locations. Nearby support for December futures can be found at $3.42 with resistance at the recent high of $3.61.

Exports, exports, exports….Weekly exports on Thursday showed a weekly sales number that was more than double trade expectations. Total sales to date are running 7% ahead of last year, which may at some point lead to an upward revisal of the USDA export figure. On Thursday the USDA reported an additional sale of 118tmt of U.S. beans to China. Technically, we did close above nearby resistance at 9.86 SX14 with the next level to the upside showing up at $10.11 SX14. Major support still looks to be found at the contract low of $9.04. Below is a look at the day chart for November beans. 

WHEAT – Kansas City Up 6, Minneapolis Up 7
Wheat couldn’t quite follow the gains of corn with a disappointing export sales number of 299tmt reported Thursday. Total sales to date are 27% lower than a year ago. The strong U.S. dollar and ample world supplies continue to weigh on exports. Funds were an estimated buyer of 2,000 wheat contracts during Thursday’s session. Nearby support for Minneapolis December futures looks to be found at $5.52 with resistance at $5.83. Support in Kansas City December futures can be found at $5.90 and resistance at $6.15.