Market Commentary | US

4/26/2012, 8:00 CST

COMMODITIES | AGRICULTURE

RCM Grains Morning Wire

CN +3 ¾         SN -1 ¾            WN +3 ½          KWN +2 ½          MWN -4                     

     HIGHLIGHTS

• Markets mixed overnight with beans bouncing back from early lows to make it back to near unchanged.
• Export sales out this morning for wheat at 744 tmt (400-650 expected), corn 826.2 tmt (800-1,000), beans 1,409.2 (900-1,250), meal 232.8 tmt(150-300), and oil .7tmt (5-15).
• Strong bean and wheat exports with everything else falling mostly in line with expectations.
• Cash soybeans reportedly starting to move after yesterday’s move in the futures to near $15.
• IGC cut its 2012/13 wheat output .7% to 676 mmt.

WEATHER

• Rains expected to start moving across the Midwest again starting tomorrow into Saturday and again on Monday.
• There is a low frost risk Saturday night for MI, IN, and OH.

     OUTLOOK

• Good bean sales should keep the market supported on pull-backs.  Some consolidation is expected as cash beans are likely to move near $15.  The trend remains higher.
• Corn downside limited as basis remains very strong and movement sluggish.
• Wheat trading near value levels.  With some talk of cool weather hurting the winter wheat, this is a good place to buy.

OPENING CALLS   

• Corn 3-4 higher, beans mixed, and wheat 3-4 higher.

Call if you have any questions.  312-870-1503

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