December 3, 2013
Producer Marketing Manager
CORN: As of 7:45 – DN 1
Export inspections were at 35.7 MBU, just above the expected 25-30. Talk of China continuing to find cargos of corn containing an unapproved GMO corn variety has been a large feature in the news lately. Mainly dry weather occurs in much of Argentina over the next five to seven days (except far north), which will improve corn and soybean planting (and wheat harvesting) prospects. Nearby ethanol margins remain good. New contract lows were made yesterday in nearly all the ’14 corn contracts.
SOYBEANS: As of 7:45 – DN 7
Beans pushed into some lofty areas ($13.46) on the Jan contract yesterday before running into some stiff resistance and selling off early yesterday morning. Export inspections out yesterday were a little disappointing at 52.6 MBU with expectations from 55-90, although only 21 is needed to meet USDA forecasts. Brazil planting progress is estimated to be 89% planted, 4 points ahead of last year. Interesting story on Brazil’s wheat/bean supply…….Too many beans? Brazil government to offers subsidized loans to producers in an effort to double wheat output. Argentina is 54% planted vs. 57% last year.
WHEAT: As of 7:45 – MPLS UP 2, KC UP 3
Dramatic change toward unusual coldness the next 5 days across U.S. HRW wheat and no significant snowpack is expected for NE Colorado, NW Kansas & much of Nebraska….too early to determine if it will damage the crop. Egypt is tendering for wheat again this week and is expected to come from the Black Sea.