Grain Report: Corn, Soybeans, Wheat

CORN

1/03 Weekly Corn Export Inspections: 15.616 million bushels vs. 28-35 million bushels. expected last week revised higher by 9.998 million bushels

1/06 Weekly Corn Export Sales: 400KT - 800KT expected

Old corn finishes down 17 ¼ cents, new crop down 8 ¼ cents.

For as stable as the corn futures looked after Wednesday's trade it was that unstable after Thursday's trade. The Wednesday night session was narrowly mixed but on the Thursday day session re-opening selling re-appeared. Weekly export sales were disappointing but we did not didn't think they were bad enough for the old crop to totally reverse Wednesday action. Thursday's weakness may have been front running of the rebalancing that is scheduled to start on Friday or perhaps some of the Index funds already started. Open interest from Wednesday's higher price action rose by 9,975 contracts this has to be viewed as some of the anticipated new money coming in. Thursday's action showed no evidence of this unless one looks to new crop. That spread lost as much as 9 cents. Yesterday the big fertilizer firm, Mosaic, predicted that U.S. farmers would plant 92-93 million acres this coming year. The Brazilian government is suggesting their corn crop is 52.7MT versus the USDA at 51.0MT. Recent rains were scheduled to move out of Argentine on Thursday. Coverage was barely enough to maintain status quo which according to most is not that good. Forecasts are calling for light scattered showers this weekend and again mid next week. The private analytical firm Informa, is suggesting the Argentine corn crop is 23.75MT versus the USDA at 25.0MT. It's amazing to see the differing

Guesstimates of the Argentine corn crop ranging from a low of 19.5MT to as high as 24.0MT. Informa has also agreed with recent Chinese estimates that their corn crop is closer to 172.0MT versus the USDA at 168.0MT.

Basis levels in the U.S. interior are mixed; some a bit easier, some a bit firmer. The US Gulf basis continues to ease. This confirms the sloppy spread action in the futures' markets. (more)