Afternoon Grains

Quiet day last pre-WASDE session NFC Grain Afternoon Comments. (10)

Corn and soybeans traded a little higher all day in our last full day of trading before the January WASDE & Quarterly Stocks Report. Agroconsult a private entity out of Brazil revised their Brazilian production up to 130.9 MMT for corn and 153.4 MMT for soybeans. USDA is currently at 127 & 152. There is no question Brazil is going to grow a crop and they will make up for any drop in Argentina. The combined production will be significantly higher for both commodities compared to last year. Argentina has already started booking soybean cargoes from Brazil to make up for any shortfall in their own production. Crushers are going to crush! The US production numbers will likely change very little, and any major changes will come from the usage side of the ledger. We are looking for a cut in corn exports, but any other categories would just be guessing. A bullish surprise, if there was to be one, would come from lower quarterly stocks in either commodity. We will either be smarter or more confused after 11:00 tomorrow. For tonight, watch 6.48 & 14.77 for support and 6.64 & 15.01 is resistance.