Lower $ supportive for grains
A mixed start is likely this am, 2-4 down in wheat, steady/easier corn and 5 higher beans. The $ is a little lower this am, a supportive influence for all the grains.
India imported a small quantity of Australian wheat, India's first wheat imports in 2 years. It is cheaper to import wheat into southern India than buy domestically produced wheat, whose price is set by the Indian government. If the Indian government relaxed strict import rules, Indian traders think as much as 1 million tonnes of wheat could be imported by March. This is despite the fact India has a large stockpile of domestically produced wheat. Currently, Australian wheat imported into southern India, including cost and freight, is about $270-300 vs domestically produced Indian wheat around $330-350.
The Baltic Exchange main sea freight index, a barometer of world international trade and the world economic situation, reached its highest level since early June, closing at 4111 today. This is due to growing Chinese raw materials demand. It could be a sign all commodities, including grains, will be rising.
Weekly export sales this am were in line for wheat at 412,000 tonnes, and corn at 488,000 tonnes. Beans were very good at 1.272 million tonnes, thanks to China taking 961,000 tonnes. Meal was also good at 224,000 tonnes. Only oil was slow at 5800 tonnes.
A factor in the market overnight was yesterday's fear of widespread vomitoxin comtamination in corn and distillers dried grain, which is a by product of ethanol manufacturing and widely used as livestock feed in place of meal. Corn was steady/easier while beans and meal were higher, similar to the market's reaction to the vomitoxin story yesterday.
Some much needed rain is forecast next weekend in the dry areas of Argentina, including the southwest part of Buenos Aires province. Scattered rain is forecast the next several days in other main grain areas of the country, all of which will be welcome. Brazil and the southwest US winter wheat belt remain in very good shape overall with ample rain.
The Midwest will stay mostly dry until Mon-Wed next week in the west and Tue-Thur in the east, when rain is forecast to move across much of the belt. This will be only a minor delay for beans as most of the crop will be harvested by then. Corn harvesting will still be going on, however, and this will be a bigger problem for this crop.
India imported a small quantity of Australian wheat, India's first wheat imports in 2 years. It is cheaper to import wheat into southern India than buy domestically produced wheat, whose price is set by the Indian government. If the Indian government relaxed strict import rules, Indian traders think as much as 1 million tonnes of wheat could be imported by March. This is despite the fact India has a large stockpile of domestically produced wheat. Currently, Australian wheat imported into southern India, including cost and freight, is about $270-300 vs domestically produced Indian wheat around $330-350.
The Baltic Exchange main sea freight index, a barometer of world international trade and the world economic situation, reached its highest level since early June, closing at 4111 today. This is due to growing Chinese raw materials demand. It could be a sign all commodities, including grains, will be rising.
Weekly export sales this am were in line for wheat at 412,000 tonnes, and corn at 488,000 tonnes. Beans were very good at 1.272 million tonnes, thanks to China taking 961,000 tonnes. Meal was also good at 224,000 tonnes. Only oil was slow at 5800 tonnes.
A factor in the market overnight was yesterday's fear of widespread vomitoxin comtamination in corn and distillers dried grain, which is a by product of ethanol manufacturing and widely used as livestock feed in place of meal. Corn was steady/easier while beans and meal were higher, similar to the market's reaction to the vomitoxin story yesterday.
Some much needed rain is forecast next weekend in the dry areas of Argentina, including the southwest part of Buenos Aires province. Scattered rain is forecast the next several days in other main grain areas of the country, all of which will be welcome. Brazil and the southwest US winter wheat belt remain in very good shape overall with ample rain.
The Midwest will stay mostly dry until Mon-Wed next week in the west and Tue-Thur in the east, when rain is forecast to move across much of the belt. This will be only a minor delay for beans as most of the crop will be harvested by then. Corn harvesting will still be going on, however, and this will be a bigger problem for this crop.
posted by InsightPublishing at
8:38 AM
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