Slightly better grains start expected
A steady/slightly better start is expected this am. The outside markets are mixed this am so they aren't expected to impact grain trading unless they move decisively one way or the other. The big buyer at the end of the session yesterday was JP Morgan in both corn and beans, enabling the local traders that had bought ahead of this to sell out their long positions at a profit.
Weekly export sales were a little slow for wheat at 359,000 tonnes, in line for meal at 111,000 tonnes old crop and 45,000 tonnes new crop and poor for oil, minus 12,000 tonnes old crop and plus 5000 tonnes new crop. Corn sales were very good at 577,000 tonnes old crop and 858,000 tonnes new crop. Bean sales were also very good at 275,000 tonnes old crop and 583,000 tonnes new crop. The new crop year starts Sep 1 for corn and beans, Oct 1 for meal and oil.
Traders are still talking about the CFTC announcement yesterday that they were withdrawing the position limit exemption in wheat, corn and beans for multi-billion-dollar index funds, now identified as Deutsche Bank and Gresham Investment Management. Both these index funds will now have to comply with federally-mandated position limits in these markets. Index funds are always long, never short, so this announcement weighed on prices yesterday, especially wheat. As of Aug 11, the latest date available, index funds, held 46% of the open interest in wheat futures and options, that's over 190,000 contracts! The two index funds named above will now have to liquidate any long positions over the limit over coming weeks. The market fears that the CFTC will soon move to withdraw the exemption of other index funds, which could have a very bearish impact on prices as there are roughly two dozen other index funds that have been exempted in the past by the CFTC from position limits.
China has purchased US beans again. This am the USDA announced the sale of 165,000 tonnes of US beans to China, the fourth day in a row China bought US beans.
The Pro Farmer crop tour reported late yesterday that corn and beans look great in Iowa but only fair in Illinois, as expected. The tour ends today and a final guess on the size of these crops will be released tomorrow.
The monsoon improved a little in India over the last week but Meteorologix Weather thinks it is starting to withdraw already from the northwest part of the country, which would stress crops in this area. Thre is a growing need for rain in parts of the Australian wheat belt, which could be severely hurt if the nascent El Niño weather pattern strengthens.
There was up to 1.5" of beneficial widespread rain in the Midwest over the last 24 hours. Mostly dry weather is expected in the west the next several days with up to 1.5" more rain forecast in the east today, followed by several days of dry weather. ---Vic Lespinasse
Weekly export sales were a little slow for wheat at 359,000 tonnes, in line for meal at 111,000 tonnes old crop and 45,000 tonnes new crop and poor for oil, minus 12,000 tonnes old crop and plus 5000 tonnes new crop. Corn sales were very good at 577,000 tonnes old crop and 858,000 tonnes new crop. Bean sales were also very good at 275,000 tonnes old crop and 583,000 tonnes new crop. The new crop year starts Sep 1 for corn and beans, Oct 1 for meal and oil.
Traders are still talking about the CFTC announcement yesterday that they were withdrawing the position limit exemption in wheat, corn and beans for multi-billion-dollar index funds, now identified as Deutsche Bank and Gresham Investment Management. Both these index funds will now have to comply with federally-mandated position limits in these markets. Index funds are always long, never short, so this announcement weighed on prices yesterday, especially wheat. As of Aug 11, the latest date available, index funds, held 46% of the open interest in wheat futures and options, that's over 190,000 contracts! The two index funds named above will now have to liquidate any long positions over the limit over coming weeks. The market fears that the CFTC will soon move to withdraw the exemption of other index funds, which could have a very bearish impact on prices as there are roughly two dozen other index funds that have been exempted in the past by the CFTC from position limits.
China has purchased US beans again. This am the USDA announced the sale of 165,000 tonnes of US beans to China, the fourth day in a row China bought US beans.
The Pro Farmer crop tour reported late yesterday that corn and beans look great in Iowa but only fair in Illinois, as expected. The tour ends today and a final guess on the size of these crops will be released tomorrow.
The monsoon improved a little in India over the last week but Meteorologix Weather thinks it is starting to withdraw already from the northwest part of the country, which would stress crops in this area. Thre is a growing need for rain in parts of the Australian wheat belt, which could be severely hurt if the nascent El Niño weather pattern strengthens.
There was up to 1.5" of beneficial widespread rain in the Midwest over the last 24 hours. Mostly dry weather is expected in the west the next several days with up to 1.5" more rain forecast in the east today, followed by several days of dry weather. ---Vic Lespinasse
posted by InsightPublishing at
10:30 AM
0 Comments:
Post a Comment
<< Home