Corn is trading lower this morning to begin the month despite higher trade on Tuesday and Wednesday. It is possible that the funds were profit taking at the end of January.
Yesterday, it was releveled that the US cattle herd has shrunken to the smallest numbers since 1951. This could have an impact on feed demand and pressure corn.
Today, the USDA will release its Fats and Oils report for December, and corn used for ethanol is expected to increase year over year by 11.4% to 474.4.
Estimates for today’s export sales report in corn is a wide range between 31 and 51 mb. There have been no flash sales reported recently and the number may be on the lower end.
Soybeans are trading lower this morning with pressure from both lower soybean meal and oil. Soybean meal previously had 3 higher closes which helped support soybeans over the past two days.
Estimates for December’s Fats and Oils report see the soybean crush at 206.5 mb which would be a 10.2% increase from the previous year and a record high for any month.
Brazilian soybean premiums are still relatively low, but did firm up on Wednesday due to a lack of farmer selling. Those low premiums caused buyers in the US to import soybeans from Brazil.
Shipments on the Parana River in South America are still halted due to a bulk carrier crashing against a bridge, and this is slowing grain shipments in the country.
All three wheat classes are trading lower this morning along with both corn and soybeans. Despite higher corn prices yesterday, wheat was not able to post a higher close.
Estimates for today’s export sales report are low for wheat and are in a range between 10 and 16 mb. Russia remains the dominant global exporter.
Argentina has benefitted from largely friendly weather so far this season, but recently has had some dryness and heat that could effect their wheat crop.
India is also in jeopardy of warmer weather damaging its wheat crop with forecasts for the month of February warmer than normal while rains may be above normal.
Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.
Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The data contained herein is believed to be drawn from reliable sources but cannot be guaranteed. This material has been prepared by a sales or trading employee or agent of Total Farm Marketing by Stewart-Peterson and is, or is in the nature of, a solicitation. Any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to Stewart-Peterson Inc. Reproduction of this information without prior written permission is prohibited. Hypothetical performance results have many inherent limitations. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. The data contained herein is believed to be drawn from reliable sources but cannot be guaranteed. Reproduction and distribution of this information without prior written permission is prohibited. This material has been prepared by a sales or trading employee or agent of Total Farm Marketing and is, or is in the nature of, a solicitation. Any decisions you may make to buy, sell or hold a position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to Total Farm Marketing.
Stewart-Peterson Inc., Stewart-Peterson Group Inc., and SP Risk Services LLC are each part of the family of companies within Total Farm Marketing (TFM). Stewart-Peterson Inc. is a publishing company. Stewart-Peterson Group Inc. is registered with the Commodity Futures Trading Commission (CFTC) as an introducing broker and is a member of National Futures Association. SP Risk Services LLC is an insurance agency. A customer may have relationships with any or all three companies.
