February 07, 2018
Drew Johnson
Grain Marketing Specialist

Turn Around Tuesday helped recover Monday’s losses.
Monthly WASDE Report out on Thursday at 11am.

Corn: steady

Corn futures recovered on Tuesday erasing all of its losses after Monday’ panic selloff. Some of the positive news, from yesterday, includes two reported corn sales of 4.7 million to Japan, and 4.1 million bushels to unknown destination. This is the seventh corn sale, that the USDA has announced, in the last eight trading sessions!!! USDA also announced that US ethanol exports were up 60% in December from a year ago. Distiller exports were also 15% higher, in December, than a year ago. Hot and dry weather, in Argentina, has traders expecting to see the USDA lower that South American country’s corn production estimate. March and Dec corn futures continue to progress towards their respective three-month highs. Resistance, for the pair, is at $3.65 March and $3.95 Dec. If we break through those levels be looking at setting some targets in at $3.70 March futures, and $3.97 or $4.00 December futures.


Soybeans: steady

Tuesday’s rally, helped March soybeans climb back into its very choppy, very large ranged, $10.20 to $9.80 sideways trend. Traders turned their focus back to the hot and dry weather in Argentina. Triple digit temps continue to plague the soybean crop, down there, and even though there is some light precipitation expected toward the end of the week, most think that it will do very little to improve the crop potential. Resistance is at $10.20 for March futures, and $10.17 and $10.20 November futures.

 

Wheat: MPLS – 2 higher. KC – 4 higher

Dry weather in the Western Plains continue to support wheat prices. Thursday’s WASDE Report is not likely to change the world outlook on wheat. July KC wheat is narrowing in on resistance at $5.10 futures.