Morning Grain Comments Wednesday December 13, 2017

 

CORN: Grains and oilseeds are seeing a dead cat bounce this morning. The futures break

continues to trigger some end user buying with S. Korea booking 67k tons of option origin corn

for April. Traders indicate this cargo should come out of the US. Weekly ethanol production

number this morning should start to pull back with margins contracting. White House meeting

today with Senator Cruz and Midwest senators regarding RFS. Look for choppy trading

session but bounces will be met with farmer selling.

 

WHEAT: Wheat is slightly firmer this morning as the recent slump in prices brings out some

export interest. Iraq tenders for 50k tons of wheat from US, Canada or Australia. They typically

book several cargoes and this should give a little floor to values. US dollar index is slightly lower

this morning, also giving a little support for wheat as technically the picture remains negative for

wheat but you can't go down every day.

 

SOY-COMPLEX: Soybeans and meal are firmer this morning in consolidation trade. Weather

maps continue to show good rains in Argentine for this next event (over 80% coverage of 1/2 to

1.5 inches) but the 11-15 day maps start to dry out again. So this rain event will be watched

closely. Brazil conditions remain very good in central and northern areas and while the

southeastern part of Brazil is trending drier, the trade isn't too worried about it at this point.

China continues to book soybean cargoes out of Brazil for Jan/Feb slot. Low water levels is

causing barge loaders to load lighter than normal due to reduced draft. After 5 lower days in a

row, look for some consolidation in the bean market with support for SF at $9.67-9.70.