Floor Talk November 21
Corn and soybeans are trading higher, while wheat is lower. Mike North, Senior Risk Management Advisor at
First Capitol Ag, says that today’s strength was certainly spurred on by soybean export numbers that were twice of expectations. "However, basis continues to deteriorate at the Gulf and most interior locations. This is likely a short lived move. The watch point in today’s market is tomorrow’s option expiration where large corn put positions are held at the $4.00 and $4.20 strikes. This will create some interesting trade as many still look for a push toward $4.00, but $4.20 rules the day in December corn. Tomorrow should be interesting."
The Dec. corn futures contract is trading 6 cents higher at $4.23. The Jan. soybean futures contract is trading 9 1/2 cents higher at $12.83. Dec. wheat futures are 1 3/4 cents higher at $6.49 per bushel. The Dec. soymeal futures contract is trading $1.60 per short ton lower at $405.40. The Dec. soyoil futures are trading $1.18 higher at $41.50.
In the outside markets, the NYMEX crude oil is $1.32 per barrel higher, the dollar is lower and the Dow Jones Industrials are 98 points higher.
At the open:
The Dec. corn futures contract is trading 3 1/2 cents higher at $4.20. The Jan. soybean futures contract is trading 12 cents higher at $12.85. Dec. wheat futures are 5 cents higher at $6.52 per bushel. The Dec. soymeal futures contract is trading $1.90 per short ton higher at $408.90. The Dec. soyoil futures are trading $0.78 higher at $41.10.
In the outside markets, the NYMEX crude oil is $0.34 per barrel higher, the dollar is lower and the Dow Jones Industrials are 56 points higher.
No fresh exports released Thursday by USDA.
But, the USDA Weekly Export Sales released Thursday:
Corn=982,700 tons vs. the trade's expectations of 400,000-1,100,000 metric tons.
Soybeans=1.38 mill. tons, vs. the trade's expectations of 500,000-900,000 metric tons.
Wheat=618,000 tons, vs. the trade's expectations of 300,000-550,000 metric tons.
--S. Korea cancelled tender for 65,000 tons of feed wheat Thursday.
--Japan bough 133,500 tons of milling wheat Thursday.
--China's Customs Dept. reports that the country's Oct. soybean imports totaled 4.19 mmt, up 4% from a year ago.
--China's Oct. corn imports totaled 39,000 mt, down 91% from a year ago. Much of that was U.S. corn.
--China's Oct. wheat imports totaled 1.3 mmt, up 273% from a year ago. Mike
Early calls: Corn is seen 2-4 cents higher, soybeans 4-6 cents higher, and wheat 2-4 cents higher.
Overnight grain, soybean markets=Trading higher.
Crude Oil=$0.26 per barrel higher.
Wall Street=Seen higher.
World Markets=Asia/Pacific stocks were lower, Europe stocks lower.
More in a minute,
Re: Floor Talk November 21
In an attempt to keep the folks informed about international ag events, here is one that is occuring this week on the Brazil/Argentina border. South America will host its 1st World Agricultural Forum. During the event, held in Foz do Iguazú, there will be debates to improve the position of the region in the world’s agribusiness.
I plan to offer updates of some of the highlights of this meeting that is being compared to the USDA's Ag Outlook Conference for South America.
To spell out the conference, let me share with you the press release from Gazeta do Povo newspaper:
"On November 21st and 22nd, the Brazilian city of Foz do Iguazú will be the venue of the 1st Agricultural Forum of South America, an event organized with the aim of strengthening the position of the region on the global stage, confirming the new expansion cycle of its agro-industry.
The main motivation of this meeting is that South America, and particularly the countries comprising the Southern Agricultural Council (Argentina, Bolivia, Brazil, Chile, Paraguay and Uruguay), has not yet achieved a significant space in the sector at a global level as the main character for the definition of agricultural and commercial policies governing the international agribusiness, even though the block is one of the world’s largest powers in food and energy production and supply.
Focusing the discussion on cross-cutting issues and the debates on different productive chains, the forum aims to show the global agro-industry trend, driven by South American participation, growth and potential.
In 2012/13 season, Argentina, Brazil, Chile, Paraguay and Uruguay exported more than 102 million tons of grains, accounting for an 85% increase in ten years. The bloc has also registered an impressive mark in the grain production sector (soybean, corn and wheat), with almost 272 million tons in the last harvest season. Compared with what was produced in 2002/03, it represents a leap of 121%. These figures place the countries of the region and their producers in the role of global players in the production and management of the agricultural and commercial policies in the international market.
Organized by the Agricultural Council do Sul (CAS) and the Brazilian newspaper Gazeta do Povo, the forum will deal with issues such as market, infrastructure, technology and sustainability. At the opening, the ministers of Agriculture of the seven countries integrating the CAS will participate in a round table on the future of the agro-industry in the world and the block’s share in this scenario. And during that morning, the executive of the Department of Agriculture and Commerce of the Organization for the Economic Co-operation and Development (OCDE), Ken Ash, will lecture on “Agriculture in the context of the global economy”. In total, during the two days of the schedule there will be four lectures for all the attendees, and 11 panel discussions, some of them held simultaneously."
I hope you find this interesting,
Re: Floor Talk November 21
At the 1st World Agricultural Forum, Ken Ash, Canadian Director of the Department of Agriculture and Commerce for the OECD, presented the importance of the South American region is to the global market.
Ash stated that the region currently produces more than 20 percent of global beef, poultry and whole milk powder, over 30 percent of oilseeds and ethanol and just over 50 percent of sugarcane. During an exclusive interview, Mr. Ash added that “The South American performance is even more impressive when we see that its share of the 2013 global exports: over 20 percent in coarse grains, over 30 percent in beef and poultry, 50 percent in oil seeds, and over 60 percent in protein-rich foods. These numbers are quite remarkable”, he stressed.