Beans Showing Strength...
Nov 15, 2011
· Corn and soybeans higher overnight with wheat slightly lower; Soybeans showing strength after testing early Oct lows late last week
· Outside market mostly negative with equities and crude lower; $US slightly higher
· Crop Progress
o Corn 93% harvested vs. 87% lw, 82% avg
o Soybeans 96% harvested vs. 92% lw, 94% avg
o Winter Wheat 96% planted vs. 94% lw, 95% avg; 50% good-excellent vs. 49% lw
· US attaché in UK estimates 11/12 Eu grain crop at 282.5mmt up from 280mmt, wheat output seen at 137.5mmt
· Argentina gov’t allowed 500,000mt of 10/11 corn exports late yesterday
· S. Korea feedmill bought 180,000mt of US & optional origin corn today for Feb/March arrival
· COT Report indicating that managed money increased their corn long by 23k to 219k, decreased longs in soybeans by 7k to 28k, reduced net short in wheat by 9k to 26k
· Brazil soybeans crop 58% planted vs. 48% last week
Soybeans showing independent strength the last couple of days. The Jan contract will need to close above $12.15 to negate a short-term down trend line that began in mid-October. Corn looking soft, but likely rangebound. Some technicians eyeing the $6.20 area in the March contract. Farmer selling of corn is light despite excellent basis levels.
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