In the overnight session corn fell 1 ¼ cents, soybeans climbed 2 cents and wheat fell ½ a penny. Wheat seemed to be unaffected in the overnight by the frigid temperatures that are currently moving through the grain belt. Illinois, Southern Michigan and Indiana will be the most vulnerable to winterkill with lows expected to fall to between-5 and -15 degrees this evening. In South America there has been dryness in the central Cordoba region which is expected to remain dry for the next couple weeks when showers are indicated in the forecast.
Yesterday, Informa economics released their January crop estimates at 10:30 AM CST. They lowered their soybean yield by .3 BPA to 47.6 on par with the USDA’s estimate of 47.5 BPA. Informa also lowered their production 22 million bushels to 3.969 billion bushels which compares to the December WASDE report showing 3.958 billion bushels. Corn yield was cut by 1.7 bushels per acre to 172.7 BPA, dragging down their production estimates by 68 million bushels. Informa’s production estimates are 18 million bushels higher than the December WASDE forecast. All together the market reaction to these numbers was minimal at the release.
March Soybeans now trading at 10.57 ¾ which is close to the high side of the range it has been trading in since late October. If the market moves higher this morning there should be strong resistance between 10.66 and 10.68 which were both previous highs on December 10th and 29th.
