Farmers Cooperative : Jan 13, 2017 Corn and soybeans both traded lower overnight, after closing higher… more

Corn and soybeans both traded lower overnight, after closing higher yesterday with the release of the USDA report. Yesterday, soybeans started the day a little lower, but then rallied after the USDA report, with March beans ending +28 3/4. This was driven by a change on the supply side, which decreased ending stocks by 60 million bushels. Now estimated at 420 million bushels, but that is still a big number. Demand remained mostly unchanged. Stocks were reduced by US production and not changed worldwide. We will continue to need support from outside markets (weaker dollar, strong crude, firm palm oil, and South American weather) to keep futures working higher.

Corn had no major surprises and finished Thursday up a penny on the nearby and unchanged for December. USDA dropped production numbers by 78 million bushels due to a drop in yield (from 175.3 to 174.6) and acres (-100,000), but production was still a record at 15.148 billion bushels. Feed usage dropped by 50 million bushels but ethanol grind was up 25 million bushels. Ethanol production is at record levels and growing and exports are at near record levels supporting a steady market.

Please Note: Markets are closed on Monday in observance of the Martin Luther King, Jr. Holiday.

Opening Calls: Corn 1-2 lower; Soybeans 5-7 lower

USDA January WASDE: