February 21, 2017
Grain Marketing Specialist
Export inspections will be released this A.M.
CORN (Up 1)
The corn market remains on this high side of the trading range even after pulling back later last week. The nearby range we have been trading since harvest is $3.80H17 on the high and $3.4175 on the low. Export inspections reported this morning are estimated to be similar to the last few weeks. The U.S. also continues to post new sales as 194kMT was reported to Japan last Friday. Reports continue to circulate of the Mexican government reaching out to South America to explore increased corn trade due to uncertainty from the U.S. THE COT report showed managed money increased their net long position for the week by 56k contracts.
SOYBEANS (Up 4)
The volatility continues as Mato Grosso, Brazil’s number 1 soybean producing area, is just over 50% complete with harvest. This is about 12% further along than last year at this time. Private estimates on production for Argentina and Brazil continue to hang in there as most feel the crop is going to meet expectations. Rain is forecasted in Brazil which may slow harvest over the next week to 10 days. Managed funds reported increasing their overall long position by 20k contracts on Friday. Nearby support for March beans is found at $10.17 with resistance at $10.635. Below is a look at the day chart for March beans with the 50 day moving average.
WHEAT (Minneapolis Unchanged, Kansas City down 2)
Warmth looks to be in the forecast for winter wheat acres in the Southern plains. Wheat acres are expected to be lower this coming year as the stocks to use ratio is still hovering around 50%. COT report last week still show managed funds net short although they trimmed their position. Below is a look at the day chart for Minneapolis March futures.