Afternoon Grain Market Commentary for 3/14/2013

Afternoon Comments 3/14/2013

Thursday, March 14, 2013, 2:33 pm
Submitted by: Kyle Lehman

Markets were mixed today with corn closing higher while soybeans finished lower for the 3^rd consecutive day. Wheat traded above the 20 day moving average for the first time in over a month triggering some technically buying which inadvertantly drug corn with it. As trade starts to anticipate corn stocks that will be released the 28^th the general concencious is a figure slightly below 5 bln bu which would confirm supply remains tight.

Soybeans continue the downslide losing around 42 cents over the past 3 trading days on concerns over reduced demand from China. Rumors China has cancelled 3 cargoes offered resistance combined with technicallys selling below the 20 day moving average.

The USDA drought monitor showed slight improvement for the midwest. Since Jan. 1^st the midwest has seen 21.18% of the land go from some form of drought to no drought with the majority of that being Indiana and Illinois. Iowa over the same time frame has only seen .09% move from drought conditions to no drought, however, the severity of the drought has reduced. The below maps show the progression with the left graph being this week, middle is last week, and the right is Jan. 1^st.

http://www.fccoop.com/markets/commentary_detail.cfm?CommentaryID=1637