$ slightly lower; better grains start expected
A mostly slightly better start this am is indicated by overnight trading. The $ is slightly lower and if it continues to weaken it will provide some support for the grains as well.
Corn harvest progress was in line with trade ideas, coming in at 95% complete yesterday afternoon. The Nov Census Bureau crush report was out this am. The crush was in line with trade ideas at 168.4 million bushels. Product stocks were very surprisingly higher than expected, however, 3.156 billion lbs for bean oil and 634,000 short tons for meal. The oil stocks were 300 million lbs higher than expected while meal stocks were 200,000 short tons higher than expected!
Two prominent senators said the Senate will take up the $1 a gallon tax subsidy given to producers of biodiesel fuel (methyl ester), chiefly made from bean oil, early next month. The subsidy will expire at the end of this month and many production facilities will temporarily shut down until the subsidy is restored. This is negative for bean oil as it will temporarily slow down demand but it was widely expected so it is already at least partly in the market.
The USDA this am announced the following sales: 78,000 tonnes of US beans sold to an unknown destination for the 09-10 crop year; 65,000 tonnes of US beans sold unknown for the 10-11 crop year; 114,000 tonnes of US beans sold to Italy for the 09-10 crop year; and 110,000 tonnes of US beans sold to China for the 10-11 crop year. The 09-10 crop year started Sep 1 and the 10-11 crop year starts Sep 1, 2010.
Jan options expire tomorrow at noon, US Central time, when the markets close early for the Christmas holiday.
South America remains a garden spot with very favorable conditions persisting in both Argentina and Brazil. Argentina had up to .7" of scattered rain the last 24 hours with more expected today. Additional welcome rain is forecast Sunday or Monday. Brazil saw scattered rain the last 24 hours in the south, dry weather in the north. More rain is forecast today-Monday in both the northern and southern growing areas.
Widespread, scattered rain or snow is forecast in the Midwest and the southwest US the next 2-3 days. Very slow late season corn harvesting is expected as a result in the Midwest.
Corn harvest progress was in line with trade ideas, coming in at 95% complete yesterday afternoon. The Nov Census Bureau crush report was out this am. The crush was in line with trade ideas at 168.4 million bushels. Product stocks were very surprisingly higher than expected, however, 3.156 billion lbs for bean oil and 634,000 short tons for meal. The oil stocks were 300 million lbs higher than expected while meal stocks were 200,000 short tons higher than expected!
Two prominent senators said the Senate will take up the $1 a gallon tax subsidy given to producers of biodiesel fuel (methyl ester), chiefly made from bean oil, early next month. The subsidy will expire at the end of this month and many production facilities will temporarily shut down until the subsidy is restored. This is negative for bean oil as it will temporarily slow down demand but it was widely expected so it is already at least partly in the market.
The USDA this am announced the following sales: 78,000 tonnes of US beans sold to an unknown destination for the 09-10 crop year; 65,000 tonnes of US beans sold unknown for the 10-11 crop year; 114,000 tonnes of US beans sold to Italy for the 09-10 crop year; and 110,000 tonnes of US beans sold to China for the 10-11 crop year. The 09-10 crop year started Sep 1 and the 10-11 crop year starts Sep 1, 2010.
Jan options expire tomorrow at noon, US Central time, when the markets close early for the Christmas holiday.
South America remains a garden spot with very favorable conditions persisting in both Argentina and Brazil. Argentina had up to .7" of scattered rain the last 24 hours with more expected today. Additional welcome rain is forecast Sunday or Monday. Brazil saw scattered rain the last 24 hours in the south, dry weather in the north. More rain is forecast today-Monday in both the northern and southern growing areas.
Widespread, scattered rain or snow is forecast in the Midwest and the southwest US the next 2-3 days. Very slow late season corn harvesting is expected as a result in the Midwest.
posted by InsightPublishing at
8:26 AM
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