Weekly Interstate Mills Grain Commentary
Quiet in grains this week
Price changes are estimates.
| Market Changes | ||||||
| Corn | Futures | |||||
| Last 7 days | Mar 2012 | 6.41 | - | 6.44 | = | +.03 |
| 1/27-2/3 | May 2012 | 6.47 | - | 6.50 | = | +.03 |
| Last month | Mar 2012 | 6.58 | - | 6.44 | = | -.14 |
| 1/3-2/3 | May 2012 | 6.67 | - | 6.50 | = | -.17 |
| Soybeans | ||||||
| Last 7 days | Mar 2012 | 12.19 | - | 12.32 | = | +.13 |
| 1/27-2/3 | May 2012 | 12.28 | - | 12.40 | = | +.12 |
| Last month | Mar 2012 | 12.27 | - | 12.32 | = | +.05 |
| 1/3-2/3 | May 2012 | 12.37 | - | 12.40 | = | +.03 |
Quiet in grains this week as weather concerns moderate in South America. Informa lowers global soybean crop estimates 7.6 mmt, 4.4 mmt lower in Argentina with 46.5 crop now projected, and a 2 mmt reduction in Brazil, with 70 mmt now projected. Corn numbers also declined as the Argentine crop is reduced by 1.5 mmt. Country movement picks up a bit after the price rally the last few weeks, relieving pressure on the pipeline, allowing corn basis to slip a bit.
Lael Weselmann, Grain Merchandiser
Strange Facts
- Each year there is 1 ton of cement poured for each man, woman and child in the world.
- Incan brides had to peel a potato to prove they would be a good wife.
- A Hydrogen gas is the least dense substance on earth at 0.08988 g/cc, while Hydrogen solid is the most dense substance on earth, at 70.6 g/cc
- A rare version of God Save the Queen by the Sex Pistols is the most valuable record of all time.
- The movie “Paris, Texas” was banned in the city of Paris, Texas shortly after its release.
With the today’s market volatility it becomes increasingly more difficult to stay informed about the markets. One way Interstate Mills is trying to help producers combat this problem is by using the DTN Portal linked with our website www.interstatemills.com. Through this program we are able to send e-mails and text messages to our producers to better inform them of current market situations. Lately we have also been using this feature to communicate with producers about opportunities that may present themselves throughout the marketing day. To get more information about this free service please contact myself at (507)456-5276 or e-mail me at kyles@interstatemills.com.
New crop corn has been steadily increasing the past couple weeks. Outlook for new crop markets is up with a confirmed upward trend line started this week. With markets increasing, be thinking about selling points to capture some profit that is available. Basis continues to tighten in new crop months due to light selling by producers. Keep in mind that February is the when crop insurance pricings come out.
New crop beans are also in an uptick market with today’s close reaching highs back to November 7, 2011. Outlook for beans is also good due to decreased estimates for yields coming out of South America and the increased acres estimated to be planted to corn here in US. Follow this market as well to get profitable sales on for next fall.
Kyle Sommers, Grain Originator
December 2012 Corn
November 2012 Beans
February 3, 2012
First and Second Resistance and Support levels as of E-CBOT close the morning of February 3, 2012.
| CH | SH | SMH | |
| CT High | 7.89 | 14.75 ¾ | 394.20 |
| R2 | 6.50 | 12.25 | 325.40 |
| R1 | 6.45 | 12.20 | 324.40 |
| Close | 6.43 | 12.17 | 323.40 |
| ECBOT | 6.44 ¼ | 12.24 | 325.10 |
| S1 | 6.40 | 12.15 | 322.40 |
| S2 | 6.35 | 12.10 | 321.40 |
| CT Low | 3.93 ½ | 9.21 | 247.70 |
| Est. FF Pos. | 113,000 | 34,000 | -10,000 |
Old Farmers Wisdom: The earth is only solid for the first 41 miles, proportionately thinner than the skin of an apple.
The information contained in this letter is taken from sources which we believe to be reliable, but is not guaranteed by us as to accuracy or completeness and is sent to you for information purpose only. There is a risk of loss when trading commodity futures and options. Interstate Mills bases its recommendations solely on the judgment of Interstate Mills personal.
