Weekly Update for January 30, 2012 - Monday, 30 January 2012

Update for January 30th, 2012

Last week we saw several positive factors advancing our grain markets. Some of these outside market influences that pushed our grains higher last week have changed and we are seeing the results in the lower prices on the board today.  The U.S. dollar is sharply higher and now sits close to its high, crude oil is down and so are gold and silver which are all impacting the grain market negatively.  Also the forecasts for Brazil and Argentina have also improved and now they are calling for normal rainfall for the next 10-14 days which could send soybean futures lower but the damage seen to the corn crop though may not be helped by these rains; reports say that the ears did not all fill to the tip which will directly affect the final yields.

There is talk that Russia’s wheat crop is in doubt.  Russia has said that they may place a tariff on exports and are considering the possibility of having to discontinue exports completely!

We are seeing historically low basis numbers.  There is universal strength in basis throughout the entire U.S., in fact at the gulf they are paying $.60-.80 OVER the CBT price!  This indicates that the pipeline for corn is very tight and producers that still hold old crop corn aren’t willing to sell at these prices or that supplies are much lower than originally thought.

© 2015 Ag Performance | All Rights Reserved.

Home | About Us | Services | Products | News | Contact Us |