December 30, 2016
Grain Marketing Specialist
Wheat Growers wishes you and your family a Happy New year!
Holiday trading hours:
Normal close today
Markets will re-open Monday night @7pm
Are you wondering about grain quality in the bins? Talk to your local Grain Marketing Specialist today to schedule a bin probe and take the worry out of grain quality!
CORN (Down 1)
Export sales released this morning were within trade estimates coming in at 37.7 mln bushels. The needed weekly amount to reach the USDA forecast is 24.2 mln bushels. Ethanol numbers were a bit surprising with production slightly dipping 8k barrels a day but strong blender demand pulled overall stocks down 377k barrels. Make sure to have your targets working as we move into January which is usually a volatile time for prices with South America’s growing season. Early indications for 2017 acres look to be down 3-4% as the trade is estimating 90 mln acres planted for this coming year. Nearby support for March futures is found at $3.455 with resistance found at the 50 day moving average of $3.55. Below is a look at the day chart for March 17 corn with the 50 day moving average.
SOYBEANS (Down 3)
Export sales reported today showed 35.8 mln bushels of new sales, which was just below trade estimates. South America harvest is just beginning in Northern parts of Brazil with good yields seen thus far. Weather forecasts for South America look to be pretty benign for the time being. Acre shifts for next year look probably as some analysts predicting up to a 5 mln acre switch out of corn and wheat into beans. Average trade guesses for acres next year are still around 88 mln planted acres. Nearby support for November 17 beans is showing up at $9.8075 with resistance at $10.05.
WHEAT (Minneapolis Down 2, Kansas City Down 1)
Wheat export sales reported this morning were strong coming in at 20.9 mln bushels. This is well above the 9.2 mln bushels needed weekly to reach the USDA forecast. Keep a close eye on spring wheat as the wheat still in the bins faces a flat, minimal carry cash market and is still a 55-60 cent premium from where prices were last August. Good target levels are a mere 10 cents away as we approach the high side of the trading range. Nearby support for Minneapolis March futures is showing up at $5.3025 with resistance at $5.45. Nearby support for Kansas City March futures is $4.0525 with resistance at $4.20.