$ is negative background feature for all grains
A lower start is forecast this am, roughly 6-8 wheat, 1-3 corn and 5-7 beans. The $ is a little higher, a negative background feature for all the grains.
Dreyfus delivered all the beans and corn they had taken delivery of the last few days, 156 beans and 86 corn. Cargill kept the 174 meal they took on delivery yesterday but the other 124 Bunge delivered yesterday that Cargill didn't take was back out on delivery this am. Other deliveries this am were 400 oil, 641 beans, 1445 corn and 555 wheat.
India is expecting a record wheat crop this season and as a result they are considering exporting wheat. This would be in stark contrast to just a couple of years ago when India was a big wheat importer and reflects surplus world wheat supplies. US wheat prices remain way above other countries, making it difficult for the US to compete in the wheat export market.
This morning's weekly export sales report shows wheat sales of only 102,000 tonnes. The rest of the numbers were in line or better than expected: 16,000 tonnes of oil; 86,000 tonnes of meal; 761,000 tonnes of corn for the 2009-10 crop year and 72,000 tonnes for the 2010-11 crop year; 182,000 tonnes of beans for the 2009-10 crop year and 188,000 tonnes for the 2010-11 crop year. The 2009-10 crop year started last Sep 1 for both corn and beans and the 2010-11 crop year will begin this coming Sep 1.
The Environmental Protection Agency announced late yesterday they will decide by late summer whether to increase the amount of ethanol blended into US gasoline, currently 10%. Traders think they will increase the blend rate to roughly 12-13%, which will increase the demand for corn to produce ethanol and would be friendly for corn prices. The Census Bureau reported Jan methyl ester production (biodiesel fuel) used 89.7 million lbs of bean oil vs 236 million lbs in Dec and 121 million in Jan '09. The drop in demand for methyl ester is due to the lack of the $1 a gallon tax subsidy since Jan 1. Congress is expected to reinstate this subsidy soon, which would be supportive for bean oil prices.
Informa will put out grain production estimates at 10:30 central time today.
Argentina had up to 1.5" of scattered rain in parts of Buenos Aires province the last 24 hours. Mostly dry weather is forecast the next several days. Brazil saw up to 3/4" of unwanted rain in Mato Grasso state the last 24 hours with more expected there today-tomorrow. Dry weather is forecast in Mato Grasso after that for at least several days, which will be welcome.
Dreyfus delivered all the beans and corn they had taken delivery of the last few days, 156 beans and 86 corn. Cargill kept the 174 meal they took on delivery yesterday but the other 124 Bunge delivered yesterday that Cargill didn't take was back out on delivery this am. Other deliveries this am were 400 oil, 641 beans, 1445 corn and 555 wheat.
India is expecting a record wheat crop this season and as a result they are considering exporting wheat. This would be in stark contrast to just a couple of years ago when India was a big wheat importer and reflects surplus world wheat supplies. US wheat prices remain way above other countries, making it difficult for the US to compete in the wheat export market.
This morning's weekly export sales report shows wheat sales of only 102,000 tonnes. The rest of the numbers were in line or better than expected: 16,000 tonnes of oil; 86,000 tonnes of meal; 761,000 tonnes of corn for the 2009-10 crop year and 72,000 tonnes for the 2010-11 crop year; 182,000 tonnes of beans for the 2009-10 crop year and 188,000 tonnes for the 2010-11 crop year. The 2009-10 crop year started last Sep 1 for both corn and beans and the 2010-11 crop year will begin this coming Sep 1.
The Environmental Protection Agency announced late yesterday they will decide by late summer whether to increase the amount of ethanol blended into US gasoline, currently 10%. Traders think they will increase the blend rate to roughly 12-13%, which will increase the demand for corn to produce ethanol and would be friendly for corn prices. The Census Bureau reported Jan methyl ester production (biodiesel fuel) used 89.7 million lbs of bean oil vs 236 million lbs in Dec and 121 million in Jan '09. The drop in demand for methyl ester is due to the lack of the $1 a gallon tax subsidy since Jan 1. Congress is expected to reinstate this subsidy soon, which would be supportive for bean oil prices.
Informa will put out grain production estimates at 10:30 central time today.
Argentina had up to 1.5" of scattered rain in parts of Buenos Aires province the last 24 hours. Mostly dry weather is forecast the next several days. Brazil saw up to 3/4" of unwanted rain in Mato Grasso state the last 24 hours with more expected there today-tomorrow. Dry weather is forecast in Mato Grasso after that for at least several days, which will be welcome.
posted by InsightPublishing at
8:36 AM
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