Good afternoon and Happy New Year! Profit taking weighed heavy on the markets today, driving March corn below 4 dollars. As of mid-day funs were sellers of an estimated 6,000 contracts of corn. Weighing in also was the weekly ethanol report. Production was estimated at 972,000 barrels/day, which was approximately 2% less than last week. Inventories increased 2.7%., while imports totaled 18,000 barrels a day. Margins continue to weaken amid falling oil and gasoline prices. This has some traders speculating that ethanol producers will start to scale back their output. The 10 day weather forecast for the Midwest called for below average temperatures, while the weather models are in disagreement over the 11-16 day period. The European model calls for moderate to heavy snow and rains for the Midwest while the GFS model is quieter in regards to precipitation and shows warmer temperatures. Soybean futures traded lower for the third consecutive session. The break in prices was attributed to profit taking and long liquidation in front of the new year. March soybeans traded well below the 50 day moving average of $10.34. Traders continue to keep a close eye on South America’s weather. Brazil has been in the news as of late due to concerns over the potential for extreme conditions - both drought and flooding. Although as a whole, South America’s weather is viewed as non-threatening, there are some forecasters and crop scouts that are expressing concerns over Brazils production potential as a whole. At midday, the GFS forecast looked slightly wetter for both central and northern Brazil over the next two weeks. Some early planted beans in Mato Grosso have been harvested and are said to be yielding well. Argentina’s bean plantings are estimated to be 91% complete and their corn plantings 75% complete. Adam Bauer Grain Originator Western Grain Marketing Cell:309-333-7617 Office:309-653-2650
Posted on: Wed, 31 Dec 2014 21:42:37 +0000
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