01-06-2014 08:01 AM - edited 01-06-2014 02:48 PM
After the close:
The COT report shows the producers cut 2,367 long corn positions in the last week. Meanwhil, here is a look at the Managed Money and the other category:
Managed Money : Other Reportables
Long : Short preading: Long : Short preading
CORN - CHICAGO BOARD OF TRADE (CONTRACTS OF 5,000 BUSHELS)
204,078 294,921 99,106 104,767 106,799 72,066
Changes from: December 24, 2013
-1,352 4,885 3,399 -2,518 7,077 4,660
Percent of Open Interest Represented by Each Category of Trader
17.0 24.5 8.2 8.7 8.9 6.0
Number of Traders in Each Category Total Traders: 662
49 81 51 77 92 96
At the close:
The March corn futures contract closed 4 cents higher at $4.27. The March soybean futures contract settled 5 1/2 cents higher at $12.76. March wheat futures finished unchanged at $6.05 per bushel. The March soymeal futures contract ended $6.70 per short ton higher at $413.80. The March soyoil futures closed $0.48 lower at $38.12.
In the outside markets, the NYMEX crude oil is $0.48 per barrel lower, the dollar is lower and the Dow Jones Industrials are 7 points lower.
Corn is up 3 cents, soybeans are up 8 cents, and wheat up 1 cent.
The March corn futures contract is trading 1 1/4 cents higher at $4.24. The March soybean futures contract is trading 5 1/2 cents higher at $12.76. March wheat futures are 2 1/4 cents higher at $6.08 per bushel. The March soymeal futures contract is trading $5.90 per short ton lower at $413.00. The March soyoil futures are trading $0.44 lower at $38.16.
In the outside markets, the NYMEX crude oil is $0.16 per barrel lower, the dollar is lower and the Dow Jones Industrials are 37 points lower.
Jack Scoville, PRICE Futures Group vice-president, says the markets are higher due to the weather and index rolling.
"Part of it is the fact that it is very cold out there and logistics are a real mess. Part of it is spec-buying before the index fund roll that starts on Wednesday and should provide some strong buying interest in corn and wheat, anyway," Scoville says.
The market is digesting talk of winterkill for the SRW crop, but most of it should have snow cover and will probably get through alright, he says. "Feed demand for corn should be stronger for the next couple of days, with the cold and very poor feed conversion rates," Scoville says.
The USDA reports, on Friday, are expected to be negative, but wheat and corn especially remain oversold and could rally on short covering into the reports, he says.
"Beans saw less than expected rains in Argentina this weekend. But, overall conditions should still be good," Scoville adds.
Meanwhile, Alan Brugler, President of Brugler Marketing & Management LLC, says the soybeans are getting support from demand.
"Soybean export activity did not slow as much as some had expected over the two holiday weeks. No sign of cancellations," Brugler says.
For corn, this market is seeing short covering ahead of the USDA reports, and also expected index fund buying to re-balance, Brugler says.
"KC wheat getting help from winterkill fears, as there are a lot of holes in Kansas on the snow cover map."
At the open:
The March corn futures contract is trading 1 cent higher at $4.25. The March soybean futures contract is trading 2 cents higher at $12.73. March wheat futures are 3 cents higher at $6.09 per bushel. The March soymeal futures contract is trading $2.60 per short ton lower at $409.70. The March soyoil futures are trading $0.22 lower at $38.38.
In the outside markets, the NYMEX crude oil is $0.82 per barrel higher, the dollar is lower and the Dow Jones Industrials are 51 points higher.
--USDA announces Monday that Mexico bought 110,600 tons of U.S. corn for 2013-14.
--USDA announces Monday that an unknown bought 160,000 tons of U.S. wheat for 2014-15 delivery.
Early calls: Corn is seen 1-2 cents higher, soybeans 4-6 cents higher, and wheat 5-7 cents higher.
Overnight grain, soybean markets=Trading higher.
Brent Crude Oil=$0.94 per barrel higher.
World Markets=Asia/Pacific stocks werelower, Europe stocks lower.
More in a minute,
01-06-2014 11:32 AM
The news that have generated more buzz on my website (agrosouth-news.com) last week was the fact that some farmers of Mato Grosso already have started to harvest the soybean crop in traditional areas of that Brazilian state. Rains have improved crop conditions for both corn and soybeans recently. Most forecasts are still at nearly 90 million mmts for soybean production.
In southern Brazil, mostly in Rio Grande do Sul, there was record heat in November and December. Traditionally, lack of moisture in this time of the year tends to hurt the crops, but it seems this turn was somewhat different. Corn producitivity did not diminish because rains came in January during the flowering. Also, more and adequate use of irrigation have helped local famers.
In Argentina, corn planting is under 77 percent and rains also improved a little bit the crop conditions, but just in the half of the planted area. The Rosario Board of Trade estimates the Argentine corn production at 22 mmts.