March 4, 2014
Producer Marketing Manager
It’s Fat Tuesday!
CORN: As of 7:45 – Down 4
Stronger markets fueled by Black Sea conflict carried into yesterday’s trade before being met with some very strong cash movement. Gulf basis levels as well as domestic processors and other end users were all backing off cash bids early in the session. Export inspections released yesterday were above expectations at 41.1 million bushels, with Japan, Korea, and Mexico the big takers. Below is the weekly May corn chart with some retracement levels ran from the contract high to the low.
SOYBEANS: As of 7:45 – Up 4
Russia/Ukraine scenario is not a soybean ‘thing’. It is interesting to note that a well followed crop consultant lowered his Brazilian production number for a second week in a row from 88.5 to 87 MMT. Lending some support to Nov futures? Soybeans inspections were just below expectations at 36 million bushels loaded last week, down from 48 million the week prior. China did take 22.6 of the 36, leaving them with 120 million bushels of sales that have not been shipped yet. The big question is how many of these with they pull from the US?
WHEAT: As of 7:45 – MPLS Down 6, KC Down 8
Yesterday’s excitement brought us the highest prices we have seen since early December and trading ranges of 34 cents on the Minneapolis May contract and 39 ¾ cents on the KC May contract. Similar to corn, cash movement of old and new crop spring wheat was prevalent today. Wheat export inspections were better than last week and exceeded expectations at 22.4 million bushels. Below is the map of Ukraine corn production by region as well as the Crimea Peninsula (circled) that is in the news.