"As a result what has happened is that we have actually already seen 5 cargos of beans coming out of Brazil that has been defaulted on. There has been about another 22 of that either being cancelled or resold.
Now our research would indicate that about 12 of those so far have been sold to the US, one to Africa, and approximately 9 of those have moved to the EU
. We will have to continue to keep a close eye on that situation.
Something that makes the market uneasy is that there is about another 23 cargos out there that could be cancelled or defaulted on by the end of June.
We will keep a very close eye on that soybean market. That has the potential if that market does roll over and head lower; that defiantly has the potential to spill over into to our other markets."
MARKET COMMENTARY April 10, 2014
Raymond Jenkins
Corn futures sold off sharply this morning, with May and July futures down 8 cents at one time----but there was nice, gradual recovery into the close, with a short time spent on the plus side before closing a penny lower. I think we’ll take that one cent loss and consider a good day considering how things looked at mid-morning.
There is a lot of market chatter about the Chinese and the status of some of their soybean purchases. This is beginning to remind me of some previous episodes when there were too many beans in the pipeline, with resulting headaches and hiccups.
The dust is still settling from the Wednesday report, and the biggest thing I can glean out of it is the fact we have to maintain a strong, make that very strong, pace of corn shipments all the way through the balance of the marketing year to hit the current corn export numbers in the supply/demand grid.
We have a very good chance of rain this weekend---sure hope they are right!
