AFB Grain-Soybean Close: Corn, Soybeans Drop, Wheat Makes Slight Gains
Soybeans posted slight losses today after early gains. November ran into resistance at $13.05 before retreating. Yield reports continue to indicate impressive yields, making a national average of 42 bushels per acre a possibility. A sharp increase in planted acreage in South America will limit the upside potential of the market.
Wheat price showed some strength today, posting modest gains today. Strong global demand remains supportive for prices. However, price gains will likely be short lived as winter plantings look good in both the U.S. and Europe. Producers growing wheat for 2014 should consider pricing some wheat now, as new crop bids remain in the $6.75 range.
Corn prices fell today, as the USDA released a new crop progress report yesterday. While harvested acres continue to trail previous year, the quality of the crop is getting better and yield reports remain good. With the reports once again flowing, expect corn prices to begin to trend lower as we look towards the November report. With December corn falling below $4.40 today, prices are like to test lows around $4.30. It is likely that this week’s export sales report could provide some temporary support to the market as prices move close to oversold territory. Given the current market expectations corn will likely look for a new harvest low before Thanksgiving
|Cash Bids||Stuttgart: 1312||Pendleton: 1322|
|New Crop||Stuttgart: 1140||Pendleton: 1155|
The ICE Dec and Mar contracts gave back 160 and 87 points on the week, respectively, as last week’s inversion between the two contracts gave way to partial carry. Well,