Afternoon Wrap Up - All Mixed Up
Mar 12, 2014
We ended up with quite a mixed bag for price action the grain and soy markets today. After pressure across all markets early, wheat turned sharply higher and into new highs for the drive, pulling the corn market along for the ride while beans and products remained under pressure. I wish I could give you a solid reason for the strength wheat but there was really little in the way of fresh news and it would appear that the funds just continue to head for the exits in face of all the uncertainty around the world right now.
Corn and beans both came well away from their respective lows today but I have to think that both markets will struggle between now and the reports at the end of the month. Beans are confronting the reality of China pulling out of the market for a while and in fact, I read today that they are exporting meal to other Pacific Rim countries. The trade is now expecting to see more cancellations instead of purchases. We could finally see a negative export sales figure tomorrow morning.
Domestically, it is also beginning to sink in the PED virus that has spread across the country is going to cut into usage for feed grains and proteins and the current USDA projections will likely need to be trimmed back.
Estimates for grain export sales in the morning are looking for corn to be in the 500 to 700k MT range and wheat between 200 and 300k.