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Cash Grain Insights

RSS By: Kevin McNew, AgWeb.com

Kevin McNew is President of Grain Hedge and Geograin. McNew was raised on a farm in central Oklahoma and received his bachelor’s degree from Oklahoma State University, and master’s and Ph.D. degrees in Economics from North Carolina State University. For over a decade, he was a Professor of Economics at the University of Maryland and Montana State University, focusing on commodity markets. He has received numerous academic awards for his research and outreach work, and was (and still is) widely regarded for boiling down complex economic issues into easy-to-understand concepts for applied life.

 

Beans Hit One-Month High

Dec 05, 2012

 Soybean prices rallied overnight as lingering concerns on South America’s crop conditions and circulating rumors of Chinese export interest helped lift nearby futures to a one-month high. Soybeans were up 9 cents a bushel, while corn and wheat prices were up 3 cents in overnight trade.

Analysts at FCStone do Brasil shaved 2 percent off their estimate for Brazil's 2012/13 soybean crop, pointing to dryness in the southern producing regions as a likely cause of lower yields.  Informa also lowered its estimate for Argentina's 2012/13 soybean production to 58.4 MMT, from 59.5 a month ago, citing a reduction in expected plantings.  But it raised its projection for Brazil's 2012/13 soybean crop to 81.4 MMT, from 81.25 previously. Traders  noted that Chinese buyers were looking for US soybeans out of the PNW market on Tuesday, but no confirmed business has been reported yet. Overheard resistance at $14.68 basis the January contract continues and the next key level of support is $14.35.  

While corn moved higher overnight prices seem range bound waiting for a clearer direction. Tight domestic supplies continue to prop up prices, but demand woes keep a bearish mood over the market. Tuesday’s news of Taiwan buying a 60,000 ton corn shipment from Brazil was further proof that the US is having trouble capturing any significant business at these price levels. Overheard resistance at $7.67 basis the March contract continues and the next key level of support is $7.47  

In wheat the market firmed overnight after 4 days of lower closes. The U.S. Plains are expected to remain dry through this week with some precipitation expected in eastern Colorado, Kansas, Oklahoma and Texas during the weekend. Overheard resistance at $8.76 basis the March contract continues and the next key level of support is $8.45.  

grain hedge topper

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