Grains Bounce after Four Days of Selling Pressure

In the overnight session the grains are higher with corn up 6 ½ cents, soybeans up 11 ¾ cents and wheat up 10 ½ cents as we have moved past the holiday trade schedule into a more normal environment. The bounce this morning in the overnight comes after four straight days of selling pressure going through the New Year. Traders will be focusing and positioning themselves for the Grain Stocks report, the USDA Supply and Demand report and the Crop Production report which will be released at 11 AM CST on the 12th.

Another cold front is expected to push into the Midwest Wednesday night bringing low temperatures between -5 and -15 degrees Fahrenheit in the northern Midwest. Some snow is expected, but the 1-5 inches in the forecast will not be enough to adequately protect the wheat. Nearly 1/3 of the belt will be at risk of winterkill damage.

There have been fresh inquiries by China into buying U.S. DDG’s following purchases last month. In each of the last two years China has purchased over 4 million metric tons of DDG’s from the U.S. However, in late 2013 and early 2014 nearly one million metric tons of DDG’s were rejected by customs because of trace amounts of the unapproved GMO strain MIR-162. China has since approved the strain but many traders are still expecting a much larger down payment for DDG’s to be purchased and shipped to China.

—Cody Bills