Thanks for stopping by our booth at Midwest Ag Expo.
It was good to see you and have a chance to visit!
FARM BIN DELIVERIES: Now accepting corn and beans to be settled to FREE PRICE LATER.
It will be free through August 31, 2012 at which time it will incur the Harvest 2012 rate.
Grain for free price later will be accepted based on space availability per location.
Please contact your delivery location manager to make your intentions known.
AVERAGE PRICING CONTRACT
May be useful to producers who have a Variable Rate Cash Rent agreement.
Call your Premier elevator to see how it can be tailored to your specific needs.
1/27/12 MARKET COMMENTS: The markets traded mixed today with corn traded higher and the soybeans lower. Corn closed up 7 1/4, soybeans down 3 3/4, and wheat down 6 1/4. The outside are mixed with crude oil trading lower, gold higher, and the dollar lower.
Corn found support through the week on firm basis attempting to pull cash bushels to market and concern over S. American corn supplies this year. After a shaky start, nearby corn finished the session 7 cents higher and deferred contracts 5 cents higher. For the week CH gained 30 cents. Producer selling was active on Thursday for a portion of the session, only to slow in the last two hours and was spotty through most of today’s session. Mexico bought 170 tmt of U.S. corn overnight. Current USDA projections for imports of corn by Mexico are 9.8 MMT but estimates are for this to increase to a possible 11-12 MMT, which would most likely originate in the U.S. Argentine corn production prospects range from 18.5-27.0 MMT with the USDA estimate at 26.0 MMT. Buenos Aires Cereal Exchange estimates the crop at 22 MMT. Assuming the need to keep some ending stocks and domestic usage of 8.0 MMT, this leaves 12.5 MMT for Export (USDA est. 18.5 MMT). Adding this shortfall to the Mexico number equates to close to 7.5 MMT (295 mln. bu.) that will need to be originated. Obviously it is hoped this comes from the U.S. World feed what clouds this enthusiasm though as it is plentiful. World feed wheat usage is already 663 mln. bu. higher than last year.
Soybeans finished the session 3-4 cents lower today but SH finished the week 32 cents higher. It seemed like soybeans were defensive this week even though they actually gained ground. Continued concern over Argentine production prospects keeps soybeans supported. Weather forecasts are somewhat vague as they seemingly call for better precipitation being “just around the corner.” It does seem that February holds better precipitation chances for Argentina, but a return to widespread general rains seems doubtful and this will keep the market on edge regarding production potential. The Buenos Aires Cereals Exchange estimates soybean production at 46.2 MMT (USDA est. 50.5). Wheat futures were 5-6 cents lower today but WH gained 37 cents for the week. The U.S. sold 133 tmt of wheat to unknown destinations overnight. There are still rumblings regarding Russia slowing export activity with a meeting to cover this topic rumored for next week. Very cold weather in this region also remains a concern.
Look for choppy markets to continue. HAVE A GOOD DAY
The information contained in this report is believed to be reliable but is not guaranteed to accuracy or completeness by Premier Cooperative, Inc. This report is provided for information purposes only and is not furnished for the purpose of, nor intended to be relied upon for specific trading in commodities here in.
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