April 9, 2014
Grain Marketing Specialist
USDA Supply/Demand report this morning @11:00 AM
CORN – Up 1
Corn was led higher yesterday into last night’s trading session on thoughts of the USDA tightening up the carryout in this morning’s USDA supply/demand report. The CME trading platform actually faltered yesterday where there was no electronic trading for corn and beans from 12:30pm until the close at 1:15pm. The CME reports that the issue has now been resolved. Concerns of planting delays keep circulating around the corn market with Iowa soil temperatures still behind the yearly average. Index funds continue to roll their long positions (275,000 contracts) to the July allowing the May/July corn spread to work out to 6 cents. Average trade estimates for ending stocks today are 1.403 bln bushels versus 1.456 bln bushels in March.
SOYBEANS – Up 12
Soybeans continue to show strength in both old and new crop with a carryout situation similar to last year. Funds remain long the bean market but are slow to add to their 177,000 contract long position heading into planting season. Technically, we need a close above $12.19 November futures to show more upside on the board. Some analysts believe the carryout has a potential to tighten up 20 mln bushel from the last USDA report in March of 145 mln bushel.
WHEAT – Up 4
The USDA released its first set of crop conditions for winter wheat on Tuesday. The crop rating showed winter wheat at 71% fair to excellent with Oklahoma and Texas being the worst rated. The average trade estimates for ending stocks in today’s USDA report is 581 mln bushels versus 558 mln bushels in March.