Grain markets finished mixed today with no big surprises being reported in the USDA December supply and demand report.
Grain Market News
U.S. Ending Stocks
USDA came in with corn stocks at 1.257 billion bushels, which was just a little above the average trade guess.
This is the amount that will be left as of August 30th before the new crop is harvested.
Soybeans left ending stocks unchanged at 220, the trade thought they would increase to 236.
Wheat stocks at 571 left unchanged, trade was looking at a fractional increase.
World Ending Stocks
Corn at 298.4, that was 2.5 million metric tons below the average trade guess.
Soybeans at 102.7, slightly above the average trade guess and slightly above last month.
Wheat stocks at 267.3, which was very close to the average trade guess.
Grain Market News
South American Precipitation Forecast
Week 1 shows the dryness in Argentina’s growing area and that does spillover into extreme southern Brazil.
Dryness continues in week 2 with some better rains in the far northwest.
Most of Brazil’s crop region will remain in very good conditions with adequate to surplus moisture except for the far southern portion.
Compounding the dry conditions is the fact it has been extremely hot in Argentina.
Yesterday’s high temperatures in the mid-90s in the south, 100s across the north, and some spilling over into extreme southern Brazil.
U.S. Drought monitor
Our current drought monitor shows that most of the plains and the western belt remain under some level of drought conditions.
Drought conditions are also in place across much of the delta and eastern corn belt.
7-Day Precipitation Forecast
This shows 1-3 inches of rain through most of the central and eastern US.
That will relieve drought conditions in many areas, even areas of the northern plains could get 1-2 inches.
March Corn Chart
Corn prices continue to show signs of wanting to bottom.
We’ve been looking to see if corn could post an outside day and we did today.
Unfortunately, we slipped back and closed just fractionally higher.
Overall, the chart looks good and enough to have the technical looking good as well.
March Soybean Chart
Soybean prices look very good from the chart.
Both yesterday and today we saw the March soybean peaking out at 14.97.
Unfortunately, beans closed a little lower today, but the chart still looks good.
We do want to note the technical indicators are now in the overbought area.
Overhead resistance is at 14.97 and then the September high at 15.08.
March KC Wheat Chart
Wheat prices also showing signs of bottoming like corn.
Although wheat was not able to post an outside day up today but still showing signs of bottoming.
Technical indicators chopping back and forth and remaining in the oversold area.
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