Nov 2nd 2012
Brad Olson
Grain Marketing Specialist

USDA s/d and WASDE Friday Nov 9th
Informa releasing estimates Friday Nov 2nd

Corn:  As of 7:30- 2 lower

The corn market started out the day yesterday stronger on spillover strength before giving way midsession closing lower 4 3/4. Weekly ethanol production reported at 825 up 24 from the previous week. Saw one private analyst release corn production estimates at 10.881 that is higher than USDA’s Oct estimate of 10.706. Informa estimates to come out midmorning. Weekly exports reported at 167.9 vs an average trade estimate of 100-400. Funds long 318. Support at 7.32 and resistance at 7.76.

Soybeans:  As of 7:30- 6 lower

Yesterday’s strength in the soybean market to be attributed to SA wet weather and rumors of the Chinese purchases. Talk of lowering Chinese production also helping support the complex.  Weather appears to be drier for Argentina moving forward helping planting progress as we come off of a very slow paced week due excessive moisture. Weekly exports at a large 741- 12/13 and 19.4- 13/14 above the average estimate of 500-700. Private analyst has soybean production at 2959 vs USDA Oct report at 2860. Funds long 210. Support at 14.84 and resistance at 15.77.

Wheat:  As of 7:30- Winter-2 higher, Spring – 1 higher

Slow emergence, low crop ratings, and spillover strength from the soy complex helped strengthen the wheat market yesterday.  Weather looks to dry over the plains adding to wheat production fears. Weekly export sales at 362.9 vs. an average estimate of 300-600. Funds long 51 Chicago wheat. Attaché has Argentine wheat crop at 10.8 vs USDA at 11.5. Minneapolis wheat – support at 9.15 resistance at 9.83, KC wheat support at 8.73 resistance at 9.57.