Jan 14th 2013
Grain Marketing Specialist
Corn: As of 7:30- 14 higher
The much anticipated Jan report is out and unlike many years in the recent history we did not trade a limit move. What we did see in the corn balance sheet was mildly bullish. Ending stocks decreased 45, taking stocks/use to %5.3 down from the previous %5.8. We achieved this by increasing planted acres but decreasing harvested and increasing yield basically leaving production with little change and we increased imports by 55. On the demand side USDA increased feed/residual by a large 300 but decreased exports by 200 (no surprise there) leaving us with a 602 ending stock number domestically, world stocks decreased by 1.62 as well. This should be supportive for the corn market but like Friday is unlikely to explode this market higher. Minor resistance at 7.23 and resistance at 7.34.
Soybeans: As of 7:30- 20 higher
Fewer changes made on the soybean balance sheet. Harvest acres increased and yield increased bringing total production up 44 to 3015. We did see an increase in crush by 35 and residual by 4 but no changes to exports. This netted us an increase of 5 bringing ending stocks up to 135 or a stock to use ratio of %4.4. World stocks lowering slightly .47 to 59.46. These numbers are considered neutral to bearish in the short term and traded as such Friday closing 6 ½ lower. Support at 13.53 and resistance at 14.00 and 14.42.
Wheat: As of 7:30- Winter 15 higher /Spring11 higher
USDA posting a bullish report for wheat as well on Friday with no production changes but an increase in feed/residual by 35 and an increase in seed by 2 we seen ending stocks decrease by 38 to 716 from 754 and %2 drop in stock to use ratio. With Fridays gain this has all three of my technical indicators turned bullish both KC and MN wheat. Resistance in KC at 8.27 and 8.53. Resistance in MN at 8.64 and 8.85.