August 2, 2012
Producer Marketing Manager
Corn: As of 7:50 – Down 9
For the second day in a row the overnight markets traded higher and turned lower after midnight. Yesterday’s weekly ethanol production number ticked up a little from the previous week. If we continue running at this pace it would put our total corn ground for ethanol at 5 billion bushels, just shy of USDA’s last number of 5.05 billion bushels for this crop year. Some analyst estimates released yesterday were using a national corn yield of 124 Bu/A. Technically we put in a lower high and a lower low yesterday. I would continue to watch how we trade around that $8.00 mark on the December contract today.
Soybeans: As of 7:50 – Down 18
How will increased chances of moisture and more moderate temps help the soybean yields? Or will we even see more precip and cooler temps come to fruition? Those are the big questions being kicked around all across the Midwest. Export sales released this morning showed 7.1 million bushels of old crop, below trade expectations. Technically, indicators are bullish but momentum is slowing.
Wheat: As of 7:30 – Mpls Down 5, KC Down 5
Yesterday marked the first day of marketing wheat in the western provinces of Canada without it having to go thru the Canadian Wheat Board, and we are already seeing the effects of it. Some spot trains have found their way to the US market depressing basis levels even further. Tomorrow we should see results on the Saudi Arabia tender that was mentioned yesterday. So far bets are on Russia getting the business, but by how much is the big question.