Grains closed higher with the nearby contracts leading the way. December corn settled 15 cents higher at $8.04, November soybeans 36 ½ cents higher at $16.34 ½, and December wheat 8 cents higher at $8.66 ¼. The weekly EIA numbers showed a slight increase in ethanol production with another drawdown in ethanol stocks. The crude oil stocks were also down more than expected which gave strength to the crude market. Overall the report was generally supportive for corn.
November soybeans were strong for the majority of the day as they stay within their wedge formation. The market is expecting large sales on tomorrow’s report and may be the reason for the additional support today.
Chart: November Soybeans
Wheat was unable to capture the same momentum corn and soybeans had but we did see some heavy bull spreading in the Dec-July13 contracts. July wheat is now only at a 33 ¼ cent premium to July corn. If this spread continues to narrow, we could see the same situation we were in last year, an increased switch to feed wheat around the world.
Tomorrow we will have the Weekly Export Sales Report at 7:30 am. The market is calling for 400,000 – 600,000 MTs of corn, 700,000 – 1,000,000 MTs of soybeans, and 400,000 – 600,000 MTs of wheat.
Friday after the market closes we will see the Cattle on Feed report. The market is estimating On-Feed to be 100.7, Placed at 91.4, and Marketed at 101.6.
Please contact EHedger at 866-433-4371 if you would like to try our proprietary farm management software called AMMO. To learn more please visit www.ammoag.com. Thanks and have a great rest of the week!
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