30 June 2015 | Online since 2003

China seal deal to import Brazilian corn wheat market manages modest gains



9 April 2014 10:10:40|Arable,Cereal,Crops,Market Reports,News

China seal deal to import Brazilian corn; wheat market manages modest gains


Soycomplex

Beans closed higher, with the largest gains at the front end, regardless of fund re-positioning. The trade is now focussed on tomorrow's upcoming USDA WASDE report, which is expected to show an extremely tight old crop availability situation. US 2013/14 soybean stocks are expected to fall to 139 million bushels from 145 million last month. World ending stocks are forecast to fall 0.5 MMT to 70.14 MMT.


Brazil's crop may shrink by 0.5-1.0 MMT from the 88.5 MMT forecast in March. Some suggest that production in Argentina may be raised 0.5 MMT to 54.5 MMT, although reports circulating today suggest that heavy rain now, in the midst of harvest, may cut output by as much as 1 MMT. Bloomberg reported that palm oil stocks in Malaysia are at their lowest level in more than 3 years. Fund buying in beans was estimated at around a net 5,000 contracts heading into tomorrow's report. May 14 Soybeans closed at $14.82 1/2, up 18 1/4 cents; Jul 14 Soybeans closed at $14.61 1/2, up 13 1/4 cents; May 14 Soybean Meal closed at $478.10, up $3.80; May 14 Soybean Oil closed at 42.11, up 68 points.

Corn

The corn market closed around 6-8 cents firmer, with fund money stepping in for an estimated net 10,000 contracts on the day, despite a disruption to trading caused by "technical issues" in the electronic market. China have sealed a deal to import Brazilian corn. The USDA attache in China estimated the country's corn imports at 4 MMT this year versus the USDA's own estimate of 5 MMT. They said that 2014/15 corn imports will fall to 3 MMT and estimated Chinese corn production next season at 218 MMT. Tomorrow's USDA report is expected to show US corn stocks of just over 1.4 billion bushels at the end of 2013/14 versus the 1.456 billion estimated a month ago.


Global stocks are estimated at 157.7 MMT versus 158.5 MMT last month. We will also get the usual weekly US ethanol production data tomorrow. Last week's output came in at 922,000 barrels/day, which is more than 10,000 bpd below the level required to hit the USDA forecast for the season. Warmer and drier conditions for the rest of the week may give US farmers in the Midwest the chance to get a bit of fieldwork done, although rain is back in the prognosis for early next week. May 14 Corn closed at $5.07, up 7 3/4 cents; Jul 14 Corn closed at $5.13, up 7 3/4 cents.

Wheat

The wheat market managed relatively modest gains, with tomorrow's USDA report likely to be of more significance for corn and beans than it is for wheat. US 2013/14 wheat carryout is estimated at 583 million bushels versus 558 million in March. World ending stocks are estimated at 183.65 MMT, which is little changed from last month. The USDA attache in China forecast their wheat crop in 2014 at 122 MMT, and estimated 2013/14 imports at 7 MMT (which is 1 MMT lower than the current official USDA figure).


They said that 2014/15 Chinese wheat imports would fall to only 4 MMT. The USDA's FAS in Australia estimated the 2014/15 wheat crop there at 24.8 MMT, down from 27 MMT this season. Despite lower production though, the attache's office projected 2014/15 Australian wheat exports at 19.1 MMT versus 18.5 MMT this season. The USDA issued their first weekly crop progress report of the year. They said that on a national level 35% of the US winter wheat crop was in good/excellent condition, which was towards the top end of trade estimates.

Kansas wheat is 29% good.excellent, but 27% poor/very poor. Oklahoma has no wheat rated excellent at all, and only 15% of the crop is seen as good. Almost half (48%) of the state's crop is poor/very poor, a percentage only topped by Texas which is 61% poor/very poor. May 14 CBOT Wheat closed at $6.81, up 4 3/4 cents; May 14 KCBT Wheat closed at $7.41 1/2, up 2 cents; May 14 MGEX Wheat closed at $7.23 1/4, up 1 cent.

Download




Comments


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

To post comment without approval login or register

Display name

Please enter your name

Email (optional)
Comment

Please enter your comment

Post Comment

Your comment submitted successfully.Please wait for admin approval.

Some error on your process.Please try one more time.



Jobs


Start Date: 30 June 2015
Skilled Tractor Driver (Highways) Job>>> Dunkeswell

Environmental contractor requires a skilled tractor driver to operate modern tractor with front flail deck and rear trimmer f...


Start Date: 17 June 2015
Experienced Herdsperson required for the day to day responsibilities and milking of just over 100. All the milk is used to make Isle of Mull cheese. >>Scotland<<

Family Dairy Farm on the Isle of Mull, Scotland has the position for an experienced herdsperson. Must be a competent&nbs...


Start Date: 20 June 2015
2 JOB ----- HARVEST STAFF/TRACTOR DRIVERS

Harvest Staff required for well-equipped 3500-acre arable farm near Darlington in North Yorkshire for mid July through to Ear...


Start Date: 29 June 2015
M484 : Farm Liaison Managers - England & Wales

Our well established client specialises in the recycling of nutrient rich organic materials to agricultural land throughout E...


Start Date: 29 June 2015
A432: Lead Assessor - UK & International

De Lacy Executive seeks a Lead Assessor for a rapidly expanding business that provides sustainability services and advice to ...





Top stories you may have missed
5 June 2015 | Cattle

A strong pound and increased red meat imports coupled with a plentiful dome...


5 June 2015 | Arable

Depression is affecting Wales' farming industry and there is a need to use ...


5 June 2015 | Arable

With just one week to go before the final judging and announcement of the w...


5 June 2015 | Finance

A rural law expert has highlighted the importance of good succession planni...


5 June 2015 | Farmshops

A south Yorkshire dairy farming family is pulling out all the stops to prom...


4 June 2015 | Finance

Predicting what is going to happen to wheat prices is a challenge, but in s...


4 June 2015 | Agri Safety

A Lancashire based livestock theft prevention scheme is aiming to go nation...


4 June 2015 | News

A female farmer has been recognised by the farming and conservation industr...


4 June 2015 | Finance

The new Conservative government appears to be preparing to implement cuts f...


4 June 2015 | Arable

The Rural Payments Agency (RPA) will have mobile support units at the follo...