Corn – Ethanol poor this week while exports were moderate, a neutral level for March is 450
↔ Total influence from this week’s 2 demand reports was mixed not offering much more direction
↔ Support for March would be around 440 and 1st resistance would be 460 which means that on
seeing neutral news we could see March gravitate to around 450
↓ It is possible that corn is seeing spillover pressure from both beans and wheat last night
↔ Open interest moved lower yesterday for the 1st time in a month, this now means we will keep a
closer watch to see if there is any fund short covering which would cause a further open interest decline
Beans – Trade was disappointed by yesterday’s 561K exports, 10 day BRA maps are drier this morning
↓ Overnight is following yesterday’s lower move on seeing exports that were considered disappointing
at 561K when most in trade likely expected 700K or more
↑ Morning SA maps are drier for all 10 days in the BRA outlook, this may catch support
↑ Strong support was seen near 1200 on the last setback, if another setback reaches near that level
aggressive support would be expected again
↓ Buenos Aires Grain Exchange raised their estimate for ARG bean production by 500K, now 52.5 MMT
Wheat – Exports solid yesterday at 510K, some end of week profit taking is possible
↑ Exports remained a solid this week at 510K, a level that may suggest March near 600 – 610
↓ March CHI wheat was up 19 cents this week so light Friday profit taking selling is possible
↔ Overseas wheat has maintained sideways for a week and a half now, this sideways move has
removed any spillover influence on US wheat lately
Cattle – Cash traded up to 176 in NE yesterday, $2.50 over last week, possible fund buying
↔ Yesterday’s PM BB was choice -0.82 select +0.61 packer BE at 186.22, packer cushion $12.98
↑ Cash traded 176 in NE which was $2.50 over last week, bids in KS/TX suggest the same trade there
↔ As of yesterday’s close, futures were pricing in cash $4 over last week, possibly already pre buying
what they feel will be a strong cash trade next week
↑ There were volume spikes during the day that hinted towards possible fund buying, open interest
was only up 2K so it is difficult to say for certain but early signs would suggest funds were buyers
↔ BB has shown 1st signs of leveling off this week, still the top issue that we should be watching most
importantly for seeing if it keeps packer profits over $10 next week