January 13th

Market Report

The USDA was a fairly flat report, wheat had bigger stocks and more carryout, soybeans and corn written down on stocks and also they factored in the decreases in S. American crops. The debate is now if this is enough of drop in the S. American yields. US wheat fell and has continued to fall over night, coupled with the weakening dollar US Ag products must be looking attractive at these levels.

EU wheat will be under pressure today but for how long, at these levels wheat is looking cheap and buyers may well come in and get some cover. Look out for an Egyptian tender coming to the market as this could be the cheapest wheat they have bought this season.

Under the radar Chinese hog prices are still very low and with a big oversupply this has limited Chinese demand for corn. Analysts see this demand not recovering for a while and this will weigh on corn demand.

It's January and we still have a long way to go, the markets have taken a hit and any buyers that are short will be seeing these levels as a potential buying opportunity.