03-19-2014 07:32 AM - edited 03-19-2014 01:45 PM
At the close:
The May corn futures contract settled 1 1/2 cents higher at $4.87. The Dec. corn futures finished 1 cent higher at $4.88. The May soybean futures contract settled 13 cents higher at $14.31. November soybean futures settled 6 1/2 cents higher at $11.91. May wheat futures closed 23 1/4 cents higher at $7.15 per bushel. The May soymeal futures contract ended $6.20 per short ton higher at $462.00. The May soyoil futures closed $0.17 lower at $42.10.
In the outside markets, the NYMEX crude oil is $0.16 per barrel lower, the dollar is higher and the Dow Jones Industrials are 53 points lower.
The May corn futures contract is trading 3/4 of a cent higher at $4.87. The Dec. corn futures are 1 cent higher at $4.88. The May soybean futures contract is 7 3/4 cents higher at $14.26. November soybean futures are 4 1/2cents higher at $11.89. May wheat futures are 15 3/4 cents higher at $7.08 per bushel. The May soymeal futures contract is trading $2.80 per short ton higher at $458.60. The May soyoil futures are trading $0.10 higher at $42.37.
In the outside markets, the NYMEX crude oil is $0.65 per barrel lower, the dollar is higher and the Dow Jones Industrials are 6 points lower.
One analyst says, "Trend following funds entered the week still short 25 thousand contracts down from 71 thousand six weeks ago. It makes sense their buying back the rest this week with news of lower crop condition ratings, a arctic cold blast coming next week and continued problems in Ukraine creating export fears."
Weekly ethanol production increased last week, according to the Energy Information Agency.
Here's the release: According to EIA data, ethanol production averaged 891,000 barrels per day (b/d)—or 37.42 million gallons daily. That is up 22,000 b/d from the week before. The four-week average for ethanol production stood at 890,000 b/d for an annualized rate of 13.64 billion gallons.
Stocks of ethanol fell to 15.3 million barrels, as rail logistics issues continued to complicate ethanol movements to both coasts. That is a 4.0% decrease from last week and a 15-week low.
Imports of ethanol were non-existent for the 24th straight week.
Gasoline demand for the week averaged 357.5 million gallons daily.
Expressed as a percentage of daily gasoline demand, daily ethanol production was 10.47%.
On the co-products side, ethanol producers were using 13.510 million bushels of corn to produce ethanol and 99,438 metric tons of livestock feed, 88,650 metric tons of which were distillers grains. The rest is comprised of corn gluten feed and corn gluten meal. Additionally, ethanol producers were providing 4.64 million pounds of corn oil daily.
Meanwhile, yesterdaty's USDA weekly grain inspections showed the lowest one week soybean inspections since 2011.
At the open:
The May corn futures contract is trading 2 1/4 cents lower at $4.84. The Dec. corn futures open 2 cents lower at $4.85. The May soybean futures contract is 11 cents higher at $14.29. November soybean futures are 2 1/4 cents higher at $11.87. May wheat futures are 5 cents lower at $6.87 per bushel. The May soymeal futures contract is trading $2.00 per short ton higher at $457.50. The May soyoil futures are trading $0.37 higher at $42.64.
In the outside markets, the Brent crude oil is $0.58 per barrel lower, the dollar is higher and the Dow Jones Industrials are 3 points higher.
Early calls: Corn is seen 1-2 cents lower, soybeans 13-15 cents higher, and wheat 3-5 cents lower.
Overnight grain, soybean markets=Trading mostly lower.
Brent Crude Oil=$0.26 per barrel lower.
Wall Street=Seen higher.
World Markets=Asia/Pacific stocks were higher, Europe stocks were mixed.
More in a minute,
03-19-2014 01:41 PM
Mike, ethanol is still climbing, .20 cents more at $2.71. Blender profits down while E-Plants rise?
Something still does not seem right. Oh, well, still good for demand.
03-19-2014 01:42 PM
The pain on this reversal has to be great.
On the other hand, India may be able to expoet a little wheat as the price is now higher than their floor for subsidies for exports. But, they may still be getting hit by WTO dumping for using subsidies.
03-19-2014 01:55 PM
I went 3182.1 miles on a working vacation. NE Florida was as far as we got away from home. Every interstate was jammed with autos. Everyone seemed to be on the move. Everyone of the gas pumps we visited had a 10% or less ethanol sticker on it. Gas usuage in the last three weeks of spring break has had to spike.
Prices as a rule go up with usage and demand. With the oxygen mandate and no other option what are they going to do? Bid it up to where they get some. Now remenber it does not takle 10% to get to the oxygenate requirements BUT does take some in every gal.
Warren Buffet/BNSF railroad inc has ordered 5000 NEW reinforced tank cars AND 500 NEW locomotives to move the tankcars around and a few more to move hopper cars. Also anounced the hireing of another 5000 people to run them.
We will be getting the ethanol cars back.
03-19-2014 02:30 PM - edited 03-19-2014 02:30 PM
Just wondering on the ethanol report.......I thought that the ethanol used in California and the west coast in general was imported ethanol and not domestic. But I read in the report that for the 24th consecutive week, ethanol imports were zero. How are they getting their ethanol out west?
03-19-2014 02:46 PM
Hobby, I have a CD that is flat, maybe I should invest in BNSF stocks. Probably too late.
I also got home from a "speaking" vacation last week. SE PA nearly 1,000 miles away was as far as we went. We took the southern rt going (I-74-I-70-I-76) and the northern rt I-80 coming home. I did see those 10% ethanol sticker on the pumps. Lots of snow on the fields in Northern IN and more was on the way. The dairy farmers in the east are smiling all the way to the bank. I heard nothing about high price corn and ethanol from them. They love that frozen ground to haul the cow manure on and they make it black. Back to the ethanol demand, I'm wonding if the blenders did not stock pile much and got caught short handed.
03-19-2014 08:27 PM
Wind, where did you go in SE PA, if I may be curious? A "speaking" vacation, eh? I grew up on a dairy farm about 25 miles SE of Lancaster. My younger brother took over the farm, and I ended up in SW KS. Its a long way from SE PA, not just in miles, but climate and farming style as well. Neighbor is a custom cutter, and has been getting some of his crew from that area the last several years.