Good Afternoon, Corn managed to finish the day higher, after 5 straight down days. Corn found some support from a stronger wheat market and from some short coverings. Funds were sellers of an estimated 3,000 contracts before noon today. The December and the March both managed to finish the day 4 cents higher. There was little else in the way of fresh market news with the exception of the weekly ethanol production numbers which were slightly bearish. Ethanol production was 4.5% lower than the previous week and used an estimated 93.4 million bu. of corn which is 5.1 million bu. less than needed/week to reach the 2014/15 USDA projection of corn used for ethanol production of 5.125 billion bu. Although margins remain positive, they have declined the past two weeks. Light rains moving through parts of the Western Midwest today slowed harvesting activity, but areas east of the Mississippi enjoyed another fine day for combining corn and soybeans. Good weather is on tap for the Midwest into early next week. Extended forecasts diverge as far as rainfall is concerned with some computer models pointing to above normal precipitation while others showing normal to below normal rainfall amounts for the first half of October. The quarterly stocks report will be released next Tuesday (September 30) with traders expecting total corn stocks as of September 1st of near 1.185 billion bu. Soybeans were slightly higher at the close today following a rather quiet trading session. SX was ½ cent higher and SF gained 1 ½ cents. Commodity funds were light buyers of soybeans, purchasing an estimated 1000 contracts as of midday. Light short covering was supportive, but the rally was a meager one as harvesting of the record crop will soon pick up steam. Light rains moved through parts of the western Midwest today, but dry and warm conditions are expected for the Midwest tomorrow into early next week. Weather for the first half of October is uncertain as forecasts are not in agreement as to Midwest rainfall. Tomorrow’s export sales report is expected to include a huge soybean sales number of from 73 to 90 million bu. Traders expect next Tuesday’s quarterly stocks report to estimate September 1st soybean stocks near 126 million bu. Adam Bauer Grain Originator Western Grain Marketing Cell:309-333-7617 Office:309-653-2650
Posted on: Wed, 24 Sep 2014 20:34:29 +0000
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