China Buys Beans, Corn Spreads on Fire...
Nov 10, 2011
· Grain markets up overnight, led again by the front-end corn contracts; Dec/Dec corn now trading over 60 cents after trading under 40 just a few days ago
· Yesterday’s USDA report showing a 100mil/bu reduction in corn usage for feed, other demand numbers left alone; Some analysts questioning USDA’s estimates regarding demand
· Outside markets mostly strong this morning with equities higher and the $US lower; Italian debt worries subsiding, at least momentarily, this morning
· Soybean export premiums were higher at the Gulf yesterday at Chinese buyers booked several cargoes of US soybeans for late Nov and Dec delivery
· Australian wheat shipments rose 36% last marketing year, putting the country ahead of the Russia as the world’s 3rd largest grain exporter (US #1, EU #2)
· According to USDA, Brazil will top US in global soybean exports in the 11/12 marketing year; US Crop shortfall and rising Brazil production to blame
· China Oct soybean imports fell to a 7 month low at 3.81mmt
· Weekly Ethanol production at 911,000bpd, down 5,000bpd from last week
· Export Sales at 7:30am CST; Pre-report trade guesses :
o Corn 550,000- 750,000
o Soybeans 400,000 – 600,000
o Wheat 350,000 – 450,000
· Support/Resistance Numbers:
o Corn(Z) Support 6.46 ½ , 6.37 Resistance 6.65 ¾ , 6.75 ½
o Soybeans(F) Support 11.75 ¼ , 1165 ¼ Resistance 12.03 ¾ , 12.22 ¼
o Wheat(Z) Support 6.31 ½ , 6.19 ¾ Resistance 6.56 ¼ , 6.69 ¼
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