AM Comments 12/13/12
Thursday, December 13, 2012, 8:04 amSubmitted by: Dustin Weiner
Good morning!
The USDA released their weekly export at 7:30 this morning and it showed strong exports in soybeans, the market was looking for 550-900kmt and we got 1.3 mmt! That is a big number and I am a little surprised the soybean market isn’t higher than it is because of it. Corn came out at around 260kmt, the market was looking to 150-400kmt so that number is right in line. Corn has had a habit of being an extreme disappointment in this report lately, so to see them actually fall within the range of guesses feels somewhat friendly!
Other than that, not much happening. Soybean basis at both the PNW and the gulf remains firm (and getting firmer). Weather in South America looks good for crop development.
Ethanol production dropped 1.3% versus last week. It is down around 12% from a year ago this week. Ethanol stocks are also rising (up 3.5% from last week and up over 17% from a year ago). It looks like that the current pace we are crushing corn for ethanol is a little behind what was projected from the USDA. When we the USDA releases their quarterly stocks reports later on in the marketing year it will be interesting to see if they will be bearish, showing us that we have more corn on hand than thought. High prices cure high prices you know…
Currently
Corn is steady/mixed
Soybeans are 5 to 7 cents higher
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