Higher grains start expected in choppy markets
A higher start is expected this am as the market continues its choppy pattern, alternating between higher and lower days. The early call is 3-5 better wheat, 2-4 up in corn and 5 higher beans. The $ is up and working higher this am, which is a negative influence for all the grains.
Egypt is in the market for wheat but they probably won't take any US origin due to too high US prices relative to the competition.
Weekly export sales were in line for wheat at 418,000 tonnes, and corn at 923,000 tonnes. Oil was much better than expected at 59,000 tonnes but meal was slow at 135,000 tonnes, as was beans at 381,000 tonnes. The US comsumed 209 million lbs of bean oil to make biodiesel (methyl ester) fuel last month, the same amount as Nov '09. In Dec '08 we used 195 million lbs.
Iraq bought 100,000 tonnes of US wheat along with 300,000 tonnes from Canada, 100,000 tonnes from Russia and 200,000 tonnes from either Australia or Germany.
Yesterday afternoon the Obama administration encouraged the use of more biofuels such as bean oil-derived biodiesel fuel and corn-derived ethanol. The EPA yesterday afternoon approved the use of bean oil to make biodiesel fuel under their revised Renewable Fuel Standard or RFS2. The EPA said bean oil based biodiesel fuel meets all clean environmental requirements for biofuels, such as greenhouse gas reductions compared with conventional gasoline and diesel fuels that biofuels will replace. The EPA ruling could sharply increase the use of bean oil to make biodiesel fuel this year and even more over coming years. Of course, the next step is for Congress to reinstate the $1 a gallon tax subsidy for the production of biodiesel fuel and until this is done, hopefully later this month or early next, production will remain very slow. Overall, the Obama administration policy on biofuels such as ethanol and biodiesel is friendly for corn and bean oil.
Expect oil to continue gaining on a spread basis vs meal.
Stats Canada will estimate grain stocks tomorrow am as of Dec 31. Trade averages are 22.7 million tonnes for all wheat vs 22.0 million Dec 31, 2008. Durum is forecast at 5.4 million vs 5.0 million a year ago. Oats are projected at 3.0 million vs 2.7 million and canola 8.8 million vs 9.15 million.
Brazil will stay hot and dry the next several days but relief in the form of cooler and wetter weather is forecast to return early next week. Argentina had up to 2" of welcome rain the last 24 hours in all three of the main growing provinces with more forecast today through Sunday. Conditions remain very favorable in both countries.
Egypt is in the market for wheat but they probably won't take any US origin due to too high US prices relative to the competition.
Weekly export sales were in line for wheat at 418,000 tonnes, and corn at 923,000 tonnes. Oil was much better than expected at 59,000 tonnes but meal was slow at 135,000 tonnes, as was beans at 381,000 tonnes. The US comsumed 209 million lbs of bean oil to make biodiesel (methyl ester) fuel last month, the same amount as Nov '09. In Dec '08 we used 195 million lbs.
Iraq bought 100,000 tonnes of US wheat along with 300,000 tonnes from Canada, 100,000 tonnes from Russia and 200,000 tonnes from either Australia or Germany.
Yesterday afternoon the Obama administration encouraged the use of more biofuels such as bean oil-derived biodiesel fuel and corn-derived ethanol. The EPA yesterday afternoon approved the use of bean oil to make biodiesel fuel under their revised Renewable Fuel Standard or RFS2. The EPA said bean oil based biodiesel fuel meets all clean environmental requirements for biofuels, such as greenhouse gas reductions compared with conventional gasoline and diesel fuels that biofuels will replace. The EPA ruling could sharply increase the use of bean oil to make biodiesel fuel this year and even more over coming years. Of course, the next step is for Congress to reinstate the $1 a gallon tax subsidy for the production of biodiesel fuel and until this is done, hopefully later this month or early next, production will remain very slow. Overall, the Obama administration policy on biofuels such as ethanol and biodiesel is friendly for corn and bean oil.
Expect oil to continue gaining on a spread basis vs meal.
Stats Canada will estimate grain stocks tomorrow am as of Dec 31. Trade averages are 22.7 million tonnes for all wheat vs 22.0 million Dec 31, 2008. Durum is forecast at 5.4 million vs 5.0 million a year ago. Oats are projected at 3.0 million vs 2.7 million and canola 8.8 million vs 9.15 million.
Brazil will stay hot and dry the next several days but relief in the form of cooler and wetter weather is forecast to return early next week. Argentina had up to 2" of welcome rain the last 24 hours in all three of the main growing provinces with more forecast today through Sunday. Conditions remain very favorable in both countries.
posted by InsightPublishing at
9:00 AM
0 Comments:
Post a Comment
<< Home