January 4, 2013
Producer Marketing Manager
Markets were quietly firmer in the overnight session as the market awaits this morning’s release of Export Sales, Weekly Energy stocks and production, as well as Informa’s Final 2012 corn and soybean estimates ahead of next week’s USDA S/D report. Are you are looking to move some grain, check quality, pull some tops off of the bins with the decent weather? Wheat Growers has FREE DP on Corn, Soybeans, and Wheat. Space may be limited at certain locations so check with your nearest location before you haul.
Corn: As of 7:50 – Steady
Export Sales report out this morning were at a dismal 1.9 million bu, compared to last week’s total of 4.1mbu. The trade was expecting 8–14mbu. Informa Economics is expected to release their 2012 crop estimate number this morning. Argentine farmers are starting to make some headway again as the weather has cleared some, now showing corn planting estimated at 82% complete, up 7 points on the week. Technically looking at support in the $6.83 level on the March contract.
Soybeans: As of 7:50 – Up 3
Export Sales report on soybeans were at 18.3 mbu, with the trade expecting 9–17mbu. Last week’s total was a marketing year low at 3.2mbu. Soybean futures struggled again yesterday after an announcement that the Chinese cancelled another 315,000 tones of soybeans for 2012-13. That takes their total amount of cancellations up to 1.2 million tones. I wouldn’t count them out though - domestic Chinese crush margins are still good, with economics on imported beans being near breakeven.
Wheat: As of 7:50 – Up 3
Export Sales report on Wheat this morning was 14.8 mbu, with the range for wheat at 13–20mbu. Last week’s total was a marketing year high at 37.1mbu. With the past couple of weeks sales, we are getting closers to the USDA's estimates on Wheat exports as seen below. The wet Argentine planting season has also affected the wheat crop with only 79% harvested or 14% behind last year’s pace.