Higher grains start expected; $ slightly lower
A higher start is expected this am, roughly 3-5 wheat, 2-3 corn and 5-10 beans. The $ is only slightly lower, not enough currently to impact the grains very much.
Deliveries totaled 3300 wheat, 800 corn, 668 oil and 300 oats. ADM put out (delivered) 550 corn. JP Morgan didn't take delivery of any corn this am, meaning Cargill didn't take delivery, at least not through JP Morgan. Egypt is in the market this am for optional origin wheat but it is doubtful they will buy any US wheat.
The Canadian railroad strike appears to be over this am before it had a chance to influence our market.
The monthly oil stocks report this am showed 212 million lbs of US bean oil was used to make bio diesel fuel (methyl ester) in Oct vs 206 million in Sep and 263 million in Oct 2008.
Stats Canada estimated all wheat production at 26.5 million tonnes, durum at 5.4 million tonnes, oats at 2.8 million, canola at 11.8 million and barley at 9.5 million. The all wheat and canola numbers were bearish, each about 1 million tonnes higher than expected. The oats estimate was a little friendly, about 300,000 tonnes less than expected.
Weekly export sales this am were in line for wheat at 391,000 tonnes, corn at 659,000 tonnes, and oil at 19,000 tonnes. Beans were poor at only 722,000 tonnes, as was meal at 107,000 tonnes. Reports of poor quality corn due to high moisture content, with the increased risk of spoilage, continue to force farmers to sell more corn and store less than they usually would. This increased farmer selling has weighed on the cash corn market, causing basis levels to break harder than usual for this time of year. (Basis is the difference between the cash price and the futures price.) For example, Iowa basis bids are roughly 50 cents below the Dec futures price vs the usual 25 cents for this time of year.
Up to 1.5" of unwanted rain fell in southern Brazil yesterday but mostly dry weather, which is welcome, is forecast the rest of the week. Argentine grain areas will stay mostly dry the rest of the week but some light, scattered rain is forecast Mon-Tue, which will be very welcome.
The Midwest saw some harvest delaying moisture in the east the last 24 hours but the west continues dry. The forecast calls for generally dry midwestern weather the rest of the week with only light, scattered precipitation early next week. This should allow for continued rapid harvest progress.
Deliveries totaled 3300 wheat, 800 corn, 668 oil and 300 oats. ADM put out (delivered) 550 corn. JP Morgan didn't take delivery of any corn this am, meaning Cargill didn't take delivery, at least not through JP Morgan. Egypt is in the market this am for optional origin wheat but it is doubtful they will buy any US wheat.
The Canadian railroad strike appears to be over this am before it had a chance to influence our market.
The monthly oil stocks report this am showed 212 million lbs of US bean oil was used to make bio diesel fuel (methyl ester) in Oct vs 206 million in Sep and 263 million in Oct 2008.
Stats Canada estimated all wheat production at 26.5 million tonnes, durum at 5.4 million tonnes, oats at 2.8 million, canola at 11.8 million and barley at 9.5 million. The all wheat and canola numbers were bearish, each about 1 million tonnes higher than expected. The oats estimate was a little friendly, about 300,000 tonnes less than expected.
Weekly export sales this am were in line for wheat at 391,000 tonnes, corn at 659,000 tonnes, and oil at 19,000 tonnes. Beans were poor at only 722,000 tonnes, as was meal at 107,000 tonnes. Reports of poor quality corn due to high moisture content, with the increased risk of spoilage, continue to force farmers to sell more corn and store less than they usually would. This increased farmer selling has weighed on the cash corn market, causing basis levels to break harder than usual for this time of year. (Basis is the difference between the cash price and the futures price.) For example, Iowa basis bids are roughly 50 cents below the Dec futures price vs the usual 25 cents for this time of year.
Up to 1.5" of unwanted rain fell in southern Brazil yesterday but mostly dry weather, which is welcome, is forecast the rest of the week. Argentine grain areas will stay mostly dry the rest of the week but some light, scattered rain is forecast Mon-Tue, which will be very welcome.
The Midwest saw some harvest delaying moisture in the east the last 24 hours but the west continues dry. The forecast calls for generally dry midwestern weather the rest of the week with only light, scattered precipitation early next week. This should allow for continued rapid harvest progress.
posted by InsightPublishing at
8:36 AM
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