04-11-2013 06:57 AM - edited 04-11-2013 11:00 AM
The May futures corn contract is trading 4 cents higher at $6.53. The May soybean futures contract is trading 6 cents higher at $13.99. May wheat futures are trading 2 cents higher at $6.99 per bushel. The May soymeal futures are trading $2.60 per short ton higher at $395.50. The May soyoil futures are trading $0.16 lower at $49.87.
In the outside markets, the NYMEX crude oil is $0.44 per barrel lower, the dollar is lower and the Dow Jones Industrials are 57 points higher.
At the open:
The May futures corn contract is trading 8 cents higher at $6.50. The May soybean futures contract is trading 6 cents higher at $13.98. May wheat futures are trading 4 cents higher at $7.00 per bushel. The May soymeal futures are trading $3.50 per short ton higher at $396.30. The May soyoil futures are trading $0.09 lower at $49.94.
In the outside markets, the NYMEX crude oil is $0.32 per barrel lower, the dollar is lower and the Dow Jones Industrials are 1 point higher.
It's happening! World buyers are stepping and taking advantage of the cheaper U.S. grains. Following strong export sales, this fresh export sale was announced by the USDA:
--China buys 360,000 tons of U.S. SRW wheat for 2013-14 delivery Thursday.
--Taiwan buys 83,980 tons of U.S. wheat Thursday.
Keep in mind that some analysts are re-evaluating their crop estimates for U.S. wheat production, as freezing temperatures hit the Plains states.
USDA released friendly Weekly Corn Export Sales Report. Soybean and wheat sales came in at the low end of expectations.
Corn= 476,000 metric tons vs. the trade's expectation of between 250,000-500,000 metric tons
Soybeans= 383,700 mt vs. the trade's expectation of between 500,000-800,000 metric tons
Soybean meal = 234,600 mt vs. the trade's expectation of between 75,000-200,000 metric tons
Wheat= 339,500 mt vs. the trade's expectation of between 300,000-600,000 metric tons.
Early calls: Corn is seen 5-7 cents higher, soybeans 5-7 cents lower, and wheat 2-4 cents higher.
Overnight grain, soybean markets=Trading mostly higher.
Crude Oil=$0.08 per barrel lower.
Wall Street=Seen opening higher. But, Hewlett-Packard could cap gains as world personal computer sales dropped 14% last quarter, according to an overnight report. Costco reports today, as well.
World=Asia/Pacific stocks and Europe's stocks are higher.
Green means go, for corn.
More in a minute,
04-11-2013 08:14 AM
What's Jeff Coleman, The Trean Group analyst and CME Group pit trader say about today's market?
"The grains were semi-active overnight, as corn and wheat futures rebounded with each trading almost a nickel higher. But, soybean futures continued the downward trend. Soybeans were 10 cents lower, at one point, as traders seem to be pressing the bean market in hopes of finding a support level. As mentioned yesterday, the WASDE report had stocks of wheat higher than expected, which sent wheat futures tumbling 12 cents lower. But, supplies of soybeans and corn were less than expected. The USDA report of March 28th had corn stocks much higher, thereby sending corn futures 13 percent lower in just two days. Corn futures have found a nice support level, but constant rumors of reduced corn and wheat imports for feed use are keeping the bulls on edge. It makes one wonder if users aren’t feeding their animals corn or wheat then what the heck are they feeding them?"
04-11-2013 08:43 AM
Today's market is trading lingering feelings from yesterday's USDA Report. It appears the tight U.S. stocks numbers are trumping the bearish world supply numbers. Plus, you wonder how much this crazy weather is playing into this stronger market Thursday?
For what it's worth, I traveled through central and eastern Iowa to Chicagoland, late last night. So, that is about a 6-hour drive. It rained, heavily, the whole way. I met one trucker that said, "I've been traveling all the way from Topeka, Kansas and it's been raining the whole &*%$@ way. What a rain event. And the car gauge said 40-degrees for an outside temp.
04-11-2013 08:48 AM
Livestock producers are still feeding some corn........let no one tell you any different. The feed column is the only one the USDA can fudge with regularity to make their numbers work...
Also, it was stated that wheat was making it's way big time into the feed rations, replacing corn.......and yet now there is suddenly a larger wheat supply? Livestock guys can't be feeding less corn and less wheat at the same time.....unless the animals are dead.
04-11-2013 09:06 AM
Wow did you see the meal exports are huge. Thats a response to cheap meal prices. We had a 8in blanket of snow last night. Calving is going full bore, with lots of overtime being put in. Looks like May before the planters roll around here. Zero corn and beans being sold at these prices
04-11-2013 09:21 AM
Yes, this was a "big rain event" at least for most of Iowa. Here in central Iowa so far had 1.5". Many not far from me gauged over 2" and some other places in Iowa over 3". It came very slow on my farm and ever drop soaked in. We are above normal rain fall for the year. Hope is building, rain and temps in June, July and August will tell the real story.
04-11-2013 09:37 AM
In Brazil, the current status of the soybean harvest is under 65 percent. In Mato Grosso is already over.
The partial solution to the ports problem was to ship part of the soybeans from Mato Grosso in Rio Grande (900 miles further south) - not anymore from Santos, in the state of São Paulo. Scheduling arrivals in the port of Santos was also useful.
In Rio Grande do Sul, where just 30 percent of the soybean production has been harvested farmers are improvising for the case that the Rio Grande port gets overloaded as well. Silo bags are starting to be used in the state with more frequency. It costs nearly US$ 750 with a 180 tons storage capacity. Just 5 percent of the total Brazilian grain crop of the last season was stored in silo bags. In Uruguay, by comparison, silo bags are used to store 70 percent of the grain crop. The picture shows a bag in a farm in Rio Grande do Sul.
Photo: Tadeu Vilani / Zero Hora
04-11-2013 09:59 AM
04-11-2013 10:07 AM
Great photo. It's interesting to think this kind of storage would last too long. U.S. South farmers have tried this method on some products, and Midwest hay has been wrapped in material that looks like this baggage. But, thanks for sharing. I wonder how long you could keep soybeans in these bags?