Thursday, October 18, 2012

A.M. Grain Market Comments 10/18/2012

Our markets have been trading higher all morning on thin volume, led by soybeans.  Farmer selling in both commodities (especially soybeans) is slow.  This is keeping both basis & spreads firm, which in turn helps support flat price. 

The USDA released their export sales data this morning – somewhat disappointing in both corn and beans, coming in less than expected.  Our pace of exports is still faster than what the USDA has been projecting but you can’t put a lot of stock into that just yet.  For example, our soybean pace is gangbuster right now but when SA starts harvesting their soybeans in Feb/March you can expect exports to fall back to reality for the remainder of the crop year.

Other than that – it is a quiet news day today.  Informa (private company) will be out at 10:30 this morning with their corn/soybean production projections for next year already.  These numbers will likely be big for both corn and soybeans, but this shouldn’t affect the market much – we have a lot of variables to factor in between now and spring planting.

Currently
Corn is 4 to 6 cents higher
Soybeans are 15 to 18 cents higher
http://www.fccoop.com/markets/information.cfm

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