Markets hot news--Feb 11
Cash grain bids were mixed Friday, with "strong demand and slow farmer selling of supplies buoying corn and wheat farmgate prices," DJ reported. Soybean basis is expected to improve, "as processors appear to be looking for stocks and deferred offers," according to FCStone.
* Wheat futures ralled off early losses thanks to strength in corn, analysts say. There are new supply worries on crop losses in Mexico, and Egypt news was seen as supportive. CBOT closed up 4 1/4c at $8.67/bushel, gaining 1.6% on the week. March KCBT was up 5c to $9.73 and March MGEX added 3c to $10.17 3/4.
* At mid-day corn futures reached a new 31-month high on increasing supply concerns. It appears Mexico needs to buy more corn. CBOT March corn was recently up 5 1/4c at $7.03 3/4 a bushel after touching a new high of $7.05.
* Spot bids at South Dakota ethanol plants: 6.2850-6.5850 UP 3.5. What are plants paying near you?
* China's recent rains and snowfall have slightly eased drought conditions in major wheat producing areas, Dow Jones reported.
* Barclays, the global financial services firm, expects continued bullishness in grains, despite current high prices, in part because of China's situation. The nation's potential to import supplies later in year is creating uncertainty in corn market, the company said. Market fundamentals, including supply, demand and weather are supportive.
Re: Markets hot news--Feb 11
Hey John I thought I would steal into your thread with a little something. ( I am supposed to be doing book work so don't tell the wife I am surfin OK?)
i wonder what crop guys would do if their commodity didn't move for 20 trading days straight?
Remeber to keep our secret OK?
|11:02 UK, 7th February 2011, by Agrimoney.com|
|Crop price swings leave one food commodity unmoved|
What crop price volatility?
Many farm commodities are seeing huge price swings, with the International Cotton Advisory Committee, for instance, saying volatility in the fibre's price had reached "extremely high" levels seen only once before, 24 years ago.
However, Chicago butter futures have been becalmed for nearly a month, if at a historically high level of $2.10 per pound.
"Butter prices are stuck," the Milk Producers Council, a joint Canada-US group, said.
"It's now been 20 trading days without a change," despite the offer by two sellers of a total of five carloads last week in what had appeared a potentially market-moving moment.
"The offers were accepted, and that was that," the council said.
Butter vs cheese
The stability in butter comes despite data showing a jump in US production of 25m pounds of butter in December, higher than a 13m-pound rise in sales, including exports.
"Still, the amount in storage at the end of December was 49m pounds lower than the previous December," the council said, flagging something of a "global shortage" in butterfat as a result of a preference in producing countries to process milk into other dairy products.
"Major exporters in Oceania and Europe are simply shifting production to cheese, in Europe, and to whole milk powder, New Zealand, in response to the demand they have for those higher valued products."
Indeed, prices of whole milk powder jumped an average of 7.2% in the latest twice-monthly internet auction run by Fonterra, the world's biggest dairy exporter, to $3,995 a tonne, their highest since July 2008.
Anhydrous milk fat, a dairy product used by bakers and ice cream makers, hit a record $6,486 a tonne.
The price gains are being attributed to rising demand for dairy products at a time when poor weather in New Zealand, and hangovers from weak markets in Europe and the US, are expected to limit growth in output in the major exporting countries this year to about 2%.
"Based upon what's happening to prices for internationally traded dairy products, a 2% increase in total milk production may not be enough to satisfy total global demand for those products," the council said.