Auto Trader Ltd
Farminguk
27 September 2016 | Online since 2003
Auto Trader Ltd


17 April 2014 10:49:02 |

China wheat auctions not going well; corn market closes lower


Soycomplex
Beans closed sharply higher for the third session in a row. Fund buying continues to support the market, they were in for an estimated net 5,000 bean contracts on the day today. Old crop remains extremely tight, with any shorts in May or July getting squeezed out as making delivery against those shorts isn't an easy option. The Buenos Aires Grain Exchange said that the rain-delayed soybean harvest in Argentina is 21.4% complete, up from 14% a week previously, producing a crop of around 13.5 MMT so far. The harvest this time last year was 38.6% complete.
The Brazilian soybean harvest was 86% complete as of last Friday. US weekly export sales are out tomorrow, with the trade expecting zero on old crop beans due to lack of availability, and with sales of maybe 150-350 TMT on new crop. We will also see how many soybeans have been shipped out of the US in the past week, with shipments so far already at 96% of the USDA's forecast for the entire season. Unfulfilled sales to China are said to be only 262,800 MT, with a further 984,000 MT outstanding for unknown. This makes the Chinese credit/default problems much more of an issue for South American sellers than it is for the US. Two vessels are currently said to be in Brazil's shipping line-up to load beans for the US. It looks like more will be needed. May 14 Soybeans closed at $15.18 3/4, up 17 1/2 cents; Jul 14 Soybeans closed at $15.08 3/4, up 21 1/4 cents; May 14 Soybean Meal closed at $491.00, up $3.60; May 14 Soybean Oil closed at 43.71, up 88 points.
Corn
The corn market closed around 4 to 6 cents lower. Funds were estimated to be net sellers of around 6,000 lots on the day. The Chinese Stats Bureau said that corn plantings there this year will rise 1.75%. Dr Cordonnier said that 7% of Mato Grosso's safrinha corn crop has already finished pollinating, with 10% of the crop at the same stage in Parana (Brazil). Crop conditions so far are "very favourable" he noted. Parana corn is rated 93% good, 6% average and only 1% poor, he said. CONAB estimate second crop corn producing 43.9 MMT this year, or around 58% of the national crop. UkrAgroConsult said Ukraine exported 954,000 MT of grain between April 1-April 14.
The vast majority of that will have been corn. The Ukraine Ministry said that the country had exported 28.6 MMT of grains to date this season, and over 18 MMT of that has been corn. The Buenos Aires Grain Exchange said that progress with Argentina's corn harvest has been very slow, with only 19.7% of the crop cut so far. That's only 3.2% up in a week, and 12 points down on a year ago at this time. They noted that there had been an early frost in some parts of the grain belt, and that this could have an adverse affect on yields. Nevertheless, they held their production estimate unchanged for now at 24 MMT. Weekly US ethanol production came in at 939k barrels/day, up sharply on 896k barrels/day a week previously, and hitting the level required to match USDA targets for the season for the first time in weeks. This was the highest weekly grind since early December. May 14 Corn closed at $4.97 1/2, down 6 1/4 cents; Jul 14 Corn closed at $5.03 1/2, down 6 1/4 cents.
Wheat
The wheat market closed lower on profit-taking. Fickle funds were given credit for ending the day net sellers of around 4,000 Chicago wheat contracts on the day - having been said to have been net buyers of 6,000 yesterday. The latest US weather forecast on the Plains is warmer, and a bit wetter.
Recent Chinese government wheat auctions haven't been going well. They only sold less than 17% of the 626 TMT of wheat on offer in today's sale and last week's auction of 858 TMT of wheat only received a take-up rate of 16%. Jordan purchased 150,000 MT of optional origin wheat yesterday and 100,000 MT of optional origin barley today. The Black Sea is the most likely origin for both. EU soft wheat exports look like they are finally slowing, with Brussels granting 421 TMT worth of export licences this week versus 585 TMT the previous week. The 2014 EU wheat and barley harvests look like being early, with crops running 2-4 weeks ahead of normal maturity following a generally mild winter.
Japan is tendering for 136,200 MT of food grade wheat. There's a long weekend looming, with US and Europe closed on Friday. US markets re-open on Monday afternoon, whilst Europe remains shut until Tuesday. Who knows what the Ukraine situation will be like by then? Trade estimates for tomorrow's weekly export sales report from the USDA are all over the place, from as low as only 250 TMT to as high as 850 TMT. May 14 CBOT Wheat closed at $6.88, down 13 3/4 cents; May 14 KCBT Wheat closed at $7.54 1/2, down 11 cents; May 14 MGEX Wheat closed at $7.26 1/2, down 12 cents.

Download

0 Comment

loginuserlogo
Name

Please enter your name


Email

Please enter your email

Please enter valid email


Comment

Please enter your comment


Post Comment

Your comment has been submitted successfully. Please wait for admin approval.


Comments

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


India | 27 September 2016
For a GM-driven agriculture revival

Agricultural growth has shown signs of stagnation of late. Some of the recent developments do not augur well for the sector and unless corrective measures are initiated, it could damage India’s long-t...


Ghana | 27 September 2016
African agriculture is powering economic transformation

The evidence is now in and the verdict is that Africa’s agriculture is powering economic transformation in the region. African agriculture has shown remarkable improvement compared to its precarious s...


USA | 27 September 2016
Wheat farmers ask RMA for help with falling numbers

They want USDA Risk Management Agency Administrator Brandon Willis to make an exception to the procedure the agency uses to calculate a farmer’s actual production history, or APH, said Michelle Hennin...


Ukraine | 27 September 2016
Ukraine mulls cancelling ban on farmland sale

The Ukrainian Agriculture Ministry said on Monday it had prepared a draft law on agricultural reform, which envisaged cancellation of a ban on the sale of the country's farmland. "Maybe at some st...


New Zealand | 27 September 2016
New Zealand to help boost local dairy industry

Thousands of Filipinos stand to benefit from technical interventions New Zealand committed to provide to boost the local dairy industry. Agriculture Secretary Emmanuel Piñol on Tuesday said Nathan ...



Trending Now

Viewed
Discussed


Top stories you may have missed
FarmingUK
FarmingUK Logo

FarmingUK

Labour will end the badger cull and prioritise ending bovine TB, Shadow Def...


FarmingUK
FarmingUK Logo

FarmingUK

A herd of rare White Park cattle could die out if its owners do not urgentl...


FarmingUK
FarmingUK Logo

FarmingUK

The UK government is "failing" to support farmers in the long-term accordin...


FarmingUK
FarmingUK Logo

FarmingUK

Retailer Co-op has announced that from May 2017 all of its bacon and lamb w...


FarmingUK
FarmingUK Logo

FarmingUK

Over 50 wildlife organisations have compiled a stock-take of all the UK's n...


FarmingUK
FarmingUK Logo

FarmingUK

In the run up to the EU farm ministers meeting the agricultural sector have...


FarmingUK
FarmingUK Logo

FarmingUK

The RPA must iron out a number of problems that still exist with 2015 BPS p...


FarmingUK
FarmingUK Logo

FarmingUK

Tourism businesses in the countryside are being held back due to the uncert...


FarmingUK
FarmingUK Logo

FarmingUK

A 24 point action plan aimed at revitalising Scotland's sheep sector after ...


FarmingUK
FarmingUK Logo

FarmingUK

A new survey has revealed that the vast majority of British consumers belie...


closeicon
Username
Password