1. Art and Diseño

February 5, 2015
Evening Grain Comments:
CORN:
It appears that the corn market has gone back to the drawing board to decide what to do next.
CH never really challenged the highs made on Tuesday as today’s volume was more subdued
although it did hold yesterday’s lows. Corn failed to accept the support from the oil market as
crude rallied over $4 off the lows at one point today. The U.S. dollar traded lower as the day
wore on. The wheat market did not offer much assistance even though it was double digits
higher on ideas that Egypt may open a line of credit with the U.S. to purchase wheat. Only
modest selling was seen in corn as the producers have left the building. Yesterday’s weekly
ethanol production report remains a hangover for the market as the trade fearful that production
will slow. Funds were rather restrained today as they only purchased up to 3000 contracts.
Weekly export sales of 33.3 mln. bu. was right in the range of expectations and brings the
yearly total to 1.266 bln. bu. That compares to 1.307 bln. bu. one year ago.
Basis Update: CIF values were slightly weaker upfront while April and forward saw some
selling pressure. Not from producer selling as they remain very, very quiet. Did not hear of any
cash trades today as business remains very quiet.
BEANS:
It was a similar day of trade for the complex today as SH traded within yesterday’s trading range.
Funds were buyers of up to 3000 contracts of soybeans on the day while they also were large
buyers of 5000 soy oil. Indonesia may subsidize its biodiesel production and that news generated
some excitement. Nothing new out of S. America as soybean harvest progresses. The Real was
mixed in Brazil today after being weaker earlier this week which did generate some cash soybean
selling in that country. Weekly export sales came in as expected with 18 mln. bu. reported in the
latest week. This brings the yearly total to 1.67 bln. bu. compared to 1.576 bln. bu. one year ago.
The U.S. needs to average just less than 4 mln. bu. /week to reach the USDA goal.
Basis Update: CIF values were quiet and unchanged. The strength remains in the front with quick
ship bids commanding the attention. Once they begin to falter, not sure what’s left to support the
values other than routine business. Processors bids beginning to firm somewhat but any cash
pushes remain on the sparse side.