Tuesday, May 29, 2012

Export Inspections

This a.m. the USDA report export inspections.

Wheat  came in at 20.5 million bushels; which should put wheat slightly above the USDA's projection of 1.025 billion bushels.

Beans continued to slow down showing only 12.4 million bushels exported; but still above the need on a per week basis to meet current USDA balance sheet projections.

Corn continued it's trend of not hitting the per week need to meet current USDA projections as it came in at 29.5 million bushels versus nearly 35 million needed on a per week basis.  With the lack of export bids out there for later summer months it could be a struggle to hit the USDA projections.  The 29.5 million was up versus the past couple of weeks.

Perhaps the lack of shipments helps explain part of the weakness on basis, the spread price weakness, as well as the board.  Have high prices or a tight balance sheet projection helped cure it self?  Or is this area the bottom we have been at just another head fake buying opportunity?  Technically corn breaking threw previous lows does not help the charts; some wonder if weather keeps cooperating if we can make another leg down.

The June 30th report looks to be a big market mover and should answer some of the questions we have had the past couple of months.


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