12 February 2016 | Online since 2003

Hurricane could damage already embattled US corn crop



30 August 2012 09:19:09|Arable,Cereal,Crops,Market Reports,News

Hurricane could damage already embattled US corn crop


Soycomplex
Sep 12 Soybeans closed at USD17.63 1/4, up 30 3/4 cents; Nov 12 Soybeans closed at USD17.53, up 30 3/4 cents; Sep 12 Soybean Meal closed at USD543.30, up USD9.10; Sep 12 Soybean Oil closed at 56.64, up 91 points. Fund buying was estimated at around 6,000 soybean contracts on the day as Nov 12 beans raced to fresh contract highs.
Meal finished close to all-time highs, with plenty of interest around even at current levels. Thai feed mills are rumoured to have bought up to 1 MMT of meal recently - possibly of South American origin. Indonesia and Vietnam are also in the market for meal, seeking 100 TMT and 200 TMT each for shipment towards the end of the year. The Chairman of US soybean export council said that the US could virtually run out of beans by the end of the 2012/13 crop year. The Chinese government will auction off another 400 TMT of soybeans tomorrow in an effort to contain rising prices. Weekly export sales tomorrow will be scrutinised for signs of a let up in demand. There may not be any, the trade is expecting soybean sales of 600-800 TMT.
Corn
Sep 12 Corn closed at USD8.10 1/4, up 20 3/4 cents; Dec 12 Corn closed at USD8.13 1/2, up 18 cents. Fund activity saw them end as estimated net buyers of around 12,000 corn contracts on the day. Concerns that the heavy rains and high winds associated with Hurricane Isaac could cause further damage to an already embattled US corn crop added support. Today’s weekly EIA report showed US ethanol production falling slightly in the past week.
The report also showed US ethanol stocks at 18.5 Million barrels, higher than last year's 17.9 million. Unlike soybeans there has been some evidence of demand destruction for corn, which is reflected in reduced demand from the ethanol sector and declining exports. Estimates for tomorrow's weekly export sales report for corn are 250-450 TMT. Tomorrow is Position day for September futures. Friday is month end and the last day of trading before the long Labor Day holiday weekend.
Wheat
Sep 12 CBOT Wheat closed at USD8.85 1/2, up 30 3/4 cents; Sep 12 KCBT Wheat closed at USD8.96 1/2, up 29 cents; Sep 12 MGEX Wheat closed at USD9.40 1/2, up 30 1/2 cents. Fund buying was estimated at around 5,000 Chicago wheat contracts on the day. The trade is pondering the outcome of a meeting on Friday between the Russian PM and his Ag Ministry, and the implications for wheat exports. An outright ban, such as the one infamously and spontaneously introduced in 2010 is not anticipated, but some form of export restrictions surely cannot be far away.
Prior to that there's a fair bit of interest around in wheat. Saudi Arabia are looking for 550 TMT of optional origin hard wheat for Dec/Feb shipment, having already bought 290 TMT for Oct/Nov recently. Syria seek100 TMT of optional origin milling wheat for Sep/Oct shipment. Tunisia today bought 150 TMT of optional origin wheat for Oct/Dec shipment. Estimates for tomorrow's weekly export sales report are 450-600 TMT.

Download





0 Comment


Name

Please enter your name


Email

Comment

Please enter your comment


Post Comment

Your comment submitted successfully.Please wait for admin approval.


Comments

No comments posted yet. Be the first to post a comment

World News

Greece | 12 February 2016
Government braces for farmers' descent on Athens

Hundreds of farmers from various parts of Greece are expected to descend on Athens on Friday to protest against planned increases to their tax and social security contributions but the government hope...


United Kingdom | 12 February 2016
Payments row Scottish government minister faces farmers

Scottish government rural affairs secretary Richard Lochhead is expected to face tough questions about payments to farmers later. The minister is due to address the NFU Scotland annual general meet...


Canada | 12 February 2016
Cage-free eggs have drawbacks says farm animal welfare expert

The push for cage-free eggs by fast food companies is not necessarily the best option, according to a farm animal welfare expert at the Atlantic Veterinary College. Michael Cockram at UPEI's Sir J...


France | 12 February 2016
France's Hollande says to cut farmers' payroll taxes

French President Francois Hollande said on Thursday that the government would reduce payroll taxes to help struggling farmers. Prime Minister Manuel Valls "will announce before February 17 a new de...


New Zealand | 12 February 2016
Sheep farmers look for answers to slow the decline

Sheep farmers can't seem to catch a break at the moment. Pat Deavoll delves deep into why sheep numbers have declined. The message is clear; the demise of sheep farming in South Canterbury reflects...



Trending Now

Viewed
Discussed

Farms and Land for sale


Holiday Rentals search



Top stories you may have missed
Username
Password