06-14-2012 07:54 AM
You are right. It is time for China to buy corn. They like $6.00 and below corn. So, it will be interesting to see if they step in at these levels. Or, will South America start to take marketshare from the U.S. Heck, Ukraine is even ramping up corn exports. There is starting to be a lot more competition on the world corn market.
06-14-2012 08:03 AM
Mike, you posted below about the trade starting to trade the weather..How can one gov agency(USDA) still tout trendline yields when another gov agency(NOAA) advertises this year to date as the warmest and driest on record. Those two statements can't reside in the same sentence...MikeM
06-14-2012 08:08 AM
It's similar to when the USDA and WASDE numbers don't match. The reason I would give is that humans are involved. You're always going to get something a little different when people determine the numbers. I'm not saying that is a bad thing. I'm just saying you have to factor in the human element. FWIW.
06-14-2012 08:29 AM
06-14-2012 09:03 AM
Good Poet site with corn bids.
--USDA announces Thursday that China bought 110,000 mt of U.S. SRW wheat for 2012-13 delivery.
Look at that corn export figure below, geemenee! I had to do a double-take on that small number. Corn exports have fallen off of a cliff. Can you believe it?
USDA Weekly Export Sales Report is bearish for the corn market, friendly for soybeans.
Corn=169,800 mt vs. the trade's expectations of 350,000-750,000 metric tons.
Soybeans=1.05 million metric tons vs. the trade's expectations of 450,000-750,000 mmt.
Wheat=Unknown vs. the trade's expectations of 150,000-350,000 mt.
Soymeal=141,300 mt vs. the trade's expectations of 75,000-175,000 mt.
--A South Korea buyer is purchasing 55,000 mt of optional-origin corn from either South America or the U.S. Thursday.
--Japan, South Korea and Taiwan bought 220,000 mt of U.S. wheat Thursday.
--USDA Weekly Export Sales will be released at 7:30am CT.
---U.S. ethanol production, last week, averaged 920,000 barrels per day (b/d) – or 38.64 million gallons daily. That is up 16,000 b/d from the week before, according to the Energy Information Agency. The 4-week average for ethanol production stood at 911,000 b/d for an annualized rate of 13.97 billion gallons.
Stocks of ethanol, which fell to their lowest point since the week ending May 11, stood at 20.7 million barrels.
Early calls: Corn 7-8 cents higher, soybeans 2-4 cents lower, and wheat 5-7 cents higher.
Overnight grain, soybean markets=Trading mostly higher.
Crude Oil=$0.15 per barrel higher.
Wall Street=Seen starting little changed, ahead of U.S. economic data and the Greece weekend vote.
More in a minute,
06-14-2012 09:20 AM