Joseph Vaclavik is the president at Standard Grain in Chicago. Standard Grain provides futures and options brokerage to farms, feedlots, elevators, processors, end-users and traders. Visit www.standardgrain.com for more information.
Grain Markets Wait for Wednesday's Report
Nov 08, 2011
· Grain markets quiet again overnight as traders wait for tomorrow’s USDA Crop Production report
· Average Trade Guesses for tomorrow:
o Corn: 147.7bpa vs. 148.1 in Oct; 795mil/bu vs. 866 in Oct
o Soybeans: 41.4bpa vs. 41.5 in Oct; 182mil/bu vs. 160 in Oct
o Wheat: 817mil/bu vs. 837 in Oct
· USDA rejecting RJO petition to delay tomorrow’s Crop Production report
· Technical Numbers:
o Corn (Z) 6.40 support / 6.60 resistance
o Soybeans (F) 11.85 support / 12.28 resistance
o Wheat (Z) 6.24 support / 6.50 resistance
· S. Korean group bought 85,000mt of corn, US/India origin; Ethiopia buys 45,000mt of milling wheat, Black Sea origin; Algeria bought 50,000mt of optional origin corn for Dec shipment
· China Nat’l Grain and Oils center reported no bids were received in their auction for 300,000mt of state reserve soybeans
· Crop Progress:
o Winter Wheat: 49% good-excellent vs. 46% last week; 94% planted vs. 89% last week; 76% emerged vs. 68% last week
o Corn: 87% harvested vs. 78% last week and 73% on average
o Soybeans: 92% harvested vs. 87% last week and 88% on average
· USDA’s Russian Ag attaché estimates that they have exported 10mmt of grain on strong demand abroad and lower competition
· USDA ag attaché to S Korea report 11/12 corn import at 8mmt vs. previous estimates of 7.7mmt
· CIF corn steady to +1 yesterday; Soybeans off about 2
Look for another choppy trade today ahead of tomorrow’s report. Outside markets are mostly choppy with the US$ mostly mixed. Equities slightly higher.
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