Aug 16th 2013
Grain Marketing Specialist
Corn: As of 7:45- 3 lower
An oversold market and the releasing of FSA pp acres at a larger than expected 3.4 million acres helped give the corn market a boost yesterday. Weather forecast continues to look warm and dry for the balance of August. Export sales appeared to be a nonfactor. Funds estimated buyers of 18,000 covering shorts. Dec corn seemed to run out of steam at the 4.75 mark that I had mentioned earlier in the week, if we push through that look to eye 4.93. The releasing of the pp acres appears to bullish but let’s not lose site of the crop that did get planted and how it’s progressing.
Soybeans: As of 7:45- 4 lower
The same drivers in corn in play for soybeans as well yesterday warmer/ drier forecast and FSA pp acres at a large 1.6 million. It will be debated how many of these acres are already reflected in USDA estimates. NOPA crush out in line with expectations at 116.33mb. It appears that this market has more of a fundamental leg to stand on as August makes beans. Weekly export sales have oc sales as net cancellation but a large 13-14 week. Nov beans rallying over a buck since last Wednesday. Funds were estimated buyers of 10,000 yesterday. We did poke above the 12.67 mark but have failed to close above it; if we do I am eyeing 12.97.
Wheat: As of 7:45- 1 lower
Row crops helped support wheat yesterday along with FSA pp data of 1.7 million acres. The warm drier weather while not favorable to row crops is just what the dr. ordered for spring wheat harvest progression. Export sales of 490 tmt slower than last week but still a respectable number. Below is MWU3 chart that I attached for your viewing pleasure.