Corn is trading slightly higher this morning after yesterday’s impressive turnaround which saw March futures fall as low as $3.94-1/2 before rallying over 12 cents to end in the green.
Yesterday, export inspections were strong with 48.9 mb inspected which was above the high range of analysts guesses and put total inspections up 36% from the previous year.
With spot corn prices so low, end user margins are widening and those who use corn for feed or to produce ethanol may be increasing their demand. This could eventually be a catalyst for funds to begin unrolling their record short position.
Soybeans are significantly higher this morning and both the corn and soy markets may have put a temporary bottom in yesterday. There is strength in both soybean meal and oil this morning.
First notice day for March grains is this Thursday, so there is an expectation to see spreading out of the March contracts and into the May, but so far that has not been evident. Spreading action may be holding off until tomorrow.
Brazil’s soybean harvest is now estimated at 40% complete which compares with 33% the previous year at this time, and the average guess for production is seen at 147.7 mmt. This remains below the USDA’s last guess of 156 mmt.
All three wheat classes are trading higher along with the rest of the grain complex this morning and also rebounded significantly from yesterday’s lows. KC wheat is the leader so far this morning.
Support in the wheat complex yesterday was driven by weather forecasts showing a cold front sweeping through the winter wheat areas which poses a freeze concern. The front should be gone next week with warmer weather taking over.
While wheat futures in the US have held up relatively well lately, Russia and Ukraine continue to try to undercut each other with wheat prices which has hurt prices globally.
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.
