Export Sales Do Little To Support Grains
Dec 31, 2012
Grains are selling lower into the New Year, with corn down 3 1/2 cents, soybeans off 15 1/2, and Chicago wheat down 9. Soybean export sales of 140,000 MT were reported to unknown destinations this morning, but this news gave little to support a market that remains focused on macro concerns. Negotiations continue in Washington as law makers struggle to find a compromise as we reach the edge of the "fiscal cliff". Expect more can kicking by politicians in the coming days, but the grains will have to start turning attention back to the fundamentals as we approach the January 11th USDA WASDE and Crop Production report.
Export inspections were released this morning, and once again corn missed the mark as soybeans met trade expectations. Right now are models indicate that export sales of corn are 50 million bushels behind the pace needed to meet USDA expectations while soybeans are roughly 180 million bushels ahead of pace. With this in mind, we expect the USDA to revise their export sales projections for soybeans higher and corn lower in the January WASDE report. Below are the trade expectations and reported figures from this morning's export inspections report.
Export Inspections 12/31/12 (Million Bushels)
| |
Expectations |
Reported |
| Corn |
11-13 |
7.91 |
| Soybeans |
35-38 |
35.54 |
| Wheat |
12-15 |
7.76 |
The market will close at 2PM Central Time today and resume trading at 9:30 AM central time on Wednesday. Everyone have a great New Years and we will see you back here on Wednesday!
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