02-06-2014 07:48 AM - edited 02-06-2014 01:45 PM
At the close:
The March corn futures contract finished 1/4 of a cent lower at $4.43. The March soybean futures contract closed 9 1/2 cents higher at $13.25. March wheat futures finished 6 3/4 cents lower at $5.80 per bushel. The March soymeal futures contract closed $4.00 per short ton higher at $446.00. The March soyoil futures finished $0.43 higher at $38.66.
In the outside markets, the Brent crude oil is $0.15 per barrel higher, the dollar is lower and the Dow Jones Industrials are 172 points higher.
U.S. ethanol exports totaled 621.5 million gallons (mg) in 2013, the third-highest annual total on record, according to data released Thursday by the Energy Information Agency. Canada was the leading export market for the year, receiving 322 million gallons—or 52% of the total. The Philippines ranked second with 51.5 mg of imports, while Brazil (43.9 mg), United Arab Emirates (39.5 mg), and Mexico (23.6 mg) rounded out the top five.
Meanwhile, U.S. ethanol imports tallied 395.2 mg for the year, down 27% from 2012 and well below the levels envisioned by EPA (600-800 mg) for the purposes of meeting the Renewable Fuel Standard’s (RFS) advanced biofuel requirements.
Exports of distillers grains—the animal feed co-product manufactured by ethanol dry mills—set a new record of 9.7 million metric tons (mmt) in 2013. China was the leading buyer.
The March corn futures contract is trading unchanged at $4.43. The March soybean futures contract is trading 11 3/4 cents higher at $13.28. March wheat futures are 2 1/4 cents lower at $5.84 per bushel. The March soymeal futures contract is trading $4.50 per short ton higher at $446.50. The March soyoil futures are trading $0.52 higher at $38.75.
In the outside markets, the Brent crude oil is $0.86 per barrel higher, the dollar is lower and the Dow Jones Industrials are 153 points higher.
Tim Hannagan, Walsh Trading senior grain analyst, says rumors help wheat, weather supports soybeans.
"Talk of derailing a Feb. 8 Canadian railroad strike has wheat backing off. If there is no strike, it would allow Canadian wheat to easily be shipped in.
For soybeans, there remains concern that the heat dome in Brazil will continue past this weekend, cutting yields and production by as much as 5 m.m.t.," Hannagan says.
At the open:
The March corn futures contract is trading 2 1/2 cents higher at $4.41. The March soybean futures contract is trading 12 cents higher at $13.28. March wheat futures are 2 1/4 cents higher at $5.89 per bushel. The March soymeal futures contract is trading $4.90 per short ton higher at $446.90. The March soyoil futures are trading $0.44 higher at $38.67.
In the outside markets, the Brent crude oil is $0.86 per barrel higher, the dollar is lower and the Dow Jones Industrials are 82 points higher.
--USDA announces that China canceled 220,000 tons of U.S. corn for 2013-14.
USDA's weekly export sales report shows strong corn, soybean and wheat numbers:
Corn= 1.70 million tons vs. the trade's expectations of 900 to 1.3 million metric tons (mt).
Soybeans= 796,500 tons vs. the trade's expectations of 650 to 950,000 metric tons (mt).
Wheat= 733,600 tons vs. the trade's expectations of 450 to 700,000 metric tons (mt).
Early calls: Corn is seen 1-2 cents higher, soybeans 7-9 cents higher, and wheat 1-2 cents higher.
Overnight grain, soybean markets=Trading higher.
Brent Crude Oil=$0.86 per barrel higher.
Wall Street=Seen lower.
World Markets=Asia/Pacific stocks were mixed-to-higher, Europe stocks higher.
More in a minute,
02-06-2014 08:21 AM
I received a few South American notes, yesterday, that I find interesting. So, a contact in Paraguay told me that farmers are so scared about corn prices that many will plant all soybeans. I know, I know, Paraguay is not considered a huge producer. But, if we need to lose 10 million acres to get back to $5.00 corn, every little bit will count. Plus, there are new estimates out about Brazil's corn production. I'm told not only is the first corn crop going to be smaller, but the Brazilian farmers will plant a lot less 2nd crop corn this year. On top of all of this, we know that Argentina's corn crop has been dinged by weather this year. So, maybe these factors play into the corn market at some point in this marketing year. By the way, so far this year, corn has performed better than expected.
02-06-2014 12:09 PM
Mike how many more days until usda announces the 16+B corn crop for the 2014 and the huge increase in soybean acres?
Would that be 10 days after the china cancelation story becomes old? Or when the SA crop size story isn't on front page?
02-06-2014 12:12 PM
Boy o boy, and a few thought I put up a "catastrophic" post the other day.
02-06-2014 03:32 PM
The problem is.....everybody knows those fantasy prediction numbers by the USDA are going to be coming out. Nothing we can do about it. The only catastrophy is that the traders believe those numbers.