05-22-2014 07:44 AM - edited 05-22-2014 02:07 PM
At the close:
The July corn futures contract finished 2 1/4 cents higher at $4.76. The Dec. corn futures closed 1 3/4 cents higher at $4.73. The July soybean futures contract finished 13 1/2 cents higher at $15.18. The Nov. soybean futures closed 17 cents higher at $12.70. July wheat futures ended 5 cents lower at $6.59 per bushel. The July soymeal futures contract closed $3.40 per short ton higher at $501.50. The July soyoil futures finished $0.39 higher at $40.86. In the outside markets, the NYMEX Brent crude oil is $0.38 per barrel lower, the dollar is higher and the Dow Jones Industrials are 28 points higher.
At the open:
The July corn futures contract is trading 2 3/4 cents higher at $4.77. The Dec. corn futures are trading 2 1/2 cents higher at $4.74. The July soybean futures contract is 20 cents higher at $15.25. The Nov. soybean futures are trading 17 cents higher at $12.71. July wheat futures are 8 cents lower at $6.56 per bushel. The July soymeal futures contract is trading $4.30 per short ton higher at $502.40. The July soyoil futures are trading $0.69 higher at $41.16. In the outside markets, the NYMEX Brent crude oil is $0.06 per barrel lower, the dollar is lower and the Dow Jones Industrials are 18 points higher.
Early calls: Corn is seen 1-2 cents higher, soybeans 17-19 cents higher, and wheat 1-2 cents higher.
Overnight grain, soybean markets=Trading higher.
Brent Crude Oil=$0.11 per barrel lower.
Wall Street=Seen higher, with pressure, though, coming from a possible sluggish home sales report, Jobless Claims data. China manufacturing data was supportive Thursday.
World Markets=Europe stocks were mixed to mostly lower, Asia/Pacific stocks mixed to higher.
More in a minute,
05-22-2014 10:38 AM
The lobbying of the mills have reversed a decision that I previously talked about here:
After we have published an information from Trigo & Farinhas consultancy revealing that Brazil’s Agriculture minister, Neri Geller, have taken a decision that would result in the maintenance of the external tariff on imported wheat, this is likely to be reversed today in the meeting with other ministries. The motives argued by the Agriculture minister were listed by AgroSouth News. But a pressure from mills from Brazil’s Northeast would have reversed the final decision that hears also the Ministries of Development, External Affairs, Finance, Planning, Agrarian Development, and Civil House.
Usually, the Northeast of Brazil imports more wheat from US and Canada. Just two ministries, Agrarian Development and Agriculture, would vote against the fall of the tariff later today.
05-22-2014 02:27 PM - edited 05-22-2014 02:57 PM
This issue over the wheat exemption has been a headache. But here it comes the latest:
The meeting between different ministries of the Brazilian government that would discuss and decide the future of the external tariff applied on the wheat imported outside of the Mercosur bloc was cancelled from today’s schedule. As AgroSouth News have anticipated, the Agriculture Minister, Neri Geller, would be against the fall of the tariff benefiting US wheat in the Northeast of Brazil, but other ministers would be more aligned with Northeastern mills and would favor to drop the tax of 10 percent. Therefore, the battle continues.
The issue is very sensitive to Brazilian farmers. For instance, the planted area of wheat in the Southern state of Paraná already reached 56 percent of the projected surface and the money was already spent, says the local Secretariat of Agriculture. According to Luiz Pacheco, owner of Trigo & Farinhas consultancy, the consequence of a fall of the external tariff on farmers of the state of Rio Grande do Sul could be even worse. “Mills would fed with imported wheat until the new harvest. That means the current surplus of wheat in the state would continue to be a surplus”, says Pacheco. Transportation costs make the wheat of Rio Grande do Sul less affordable than US wheat in the Northeast of Brazil. A new meeting on the issue was not scheduled yet.
05-22-2014 02:55 PM
Sounds like we are too cheap on the price of wheat if we can ship it in at least three different modes from a hemisphere away for less than they can raise it internally.
Where have we heard this type of thing before???? (Hint beans)
05-22-2014 03:16 PM
Shipping wheat from Bahia Blanca (Argentina) is also cheaper than from Rio Grande (Rio Grande do Sul, Brazil) to Fortaleaza, Northeast of Brazil. So it's all about transportation costs in Brazil itself...