October 10, 2013
Producer Marketing Manager
Have you seen our ‘menu’ of all the Grain Marketing Options we offer? More than just storage, we have alternatives that make sense. Contact your local Grain Marketing Specialist or location for more info.
CORN: As of 7:45 – Up 2
Two sided trade overnight has values higher this morning. Resistance is still at the 20 moving average around $4.50 on the Dec contract. Taking a back seat to bean harvest in most areas.
SOYBEANS: As of 7:45 – UP 8
Stronger overnight as we dance around the $13.00 mark on the Nov contract. Harvest is rolling ahead of some forecasted precip for tonight into tomorrow for the Dakotas. It looks like more precip the farther west you go. I had a producer ask me a question regarding “what’s the American Farmer’s competition doing?” He was referring to what the S American (SAM) producer is gearing up to plant this fall. Below is a chart on the Corn/Soybean ratio for their new crop months (MAY). As you can see the market is telling them to plant more beans and less corn with a ratio that strong. Values over 2.4 typically prompt more bean production. If you fast forward a few months and get to our 2014 new crop, the market is comfortable today that SAM will come thru and produce enough and thus we are looking at a neutral fall 2014 ratio of around a 2.4. Stay tuned……lots of variables to wade through between now and next Spring!
WHEAT: As of 7:45 – UP 3
Egypt is tendering for wheat today and is expected to source from Russia. We’ll see how close US offers are.