Jan 3rd 2014
Grain Marketing Specialist
Corn: As of 7:45- 1 higher
Corn trading lower yesterday on continued fears of MIR 162 issues in both corn and DDG’s along with spillover pressure from soybeans. We did trade down to and bounced off of the 4.18 ½ mark I mentioned yesterday. Rail performance still remains to be an issue particularly in the Western Corn Belt and now looks to possibly affect ethanol logistics. The folks out there thinking that lackluster futures will lead to firmer basis levels may not want to be married to that idea for too long… Jan 10th at 11 a.m. USDA will release the final production/ Dec 1 stocks report. Stay tuned… Export sales this morning at 154.5 for 13/14 and 20.3 14/15 below estimates.
Soybeans: As of 7:45- 4 higher
Soybeans sold off sharply yesterday on favorable SA weather and a weak meal market. I have enclosed a March meal chart. We closed below the 12.74 support I had mentioned yesterday, which could open to test the Nov low of 12.33. Nov beans to Dec corn ratio at 2.52:1 which would suggest increased bean plantings. Likely that ratio will lessen over time. Will that come from lower beans or higher corn?? Don’t forget about managing your 2014 price risk. Export sales this morning at 943.4 for 13/14 and 237.5 for 14/15 well above the estimated range of 500-800.
Wheat: As of 7:45- 1 lower
The wheat market seemed to shrug off concern of damage due to the frigid temps and resumed its move lower yesterday. USDA winter wheat plantings will be released Jan 10th as well as Dec 1 stocks. Export sales this morning at a dissapointing 248.5 for 13/14 and 8 for 14/15.