Morning Grain Comments Thursday January 4, 2018

SOY-COMPLEX: Soybeans and products are slightly lower this morning in consolidation.

Weather maps indicating rains for Argentina out beyond the 12 day window though next 10 days

has limited moisture (less than 3/4 inch). Some bean plants starting to offer free DP in an effort

to draw out bushels. Outside markets has energies steady to firmer while US dollar is under

pressure this morning. Brazilian real dipped under 3.23 to the US dollar last night.

CORN: Corn is lower this morning. Corn movement in the Midwest has picked up this week as

farmers take advantage of the capital flow in for the start of the year. Weekly EIA report today

should show ethanol production slowing due to the poor margins and recent cold snap. Weekly

export sales report is delayed until tomorrow because of the holiday. Currently US corn is the

cheapest source for world buyers given firm Argentine values. Look for corn to remain stuck in a

$3.45-3.60 trading range as rallies above $3.55 CH bring out heavy farmer selling and breaks

under $3.50 bring outs out end user buying.

WHEAT: Wheat is slightly lower this morning as the market looks for fresh news to trade. The

market really won't know the full extent of the winterkill damage for a number of weeks yet.

Overnight Algeria tenders for option origin wheat for March shipment. European wheat futures

are slightly lower this morning. After rallying over 20 cents/bu the last 5 sessions, the wheat

markets are due for a pull back.