Morning Market Report 29th July 2013
profarmer@nzx.com
Insightful market news/info from these folks... well
worth the subscription! Right Mallee!
CBOT Wheat
Sept futures up 1.00 USc/bu at 650.25 USc/bu. Dec
13 up 0.75 USc/bu at 661.50 USc/bu, settling 7.25
USc/bu from the high and 2.00 USc/bu from the low
Friday night.
CBOT wheat found some support Friday night on
thoughts the global balance sheet may need to tighten
a little further if India and Russian production is
revised lower and China continue to import strongly.
The downward pressure on prices continues to come
from an expected large corn crop, which will take away
wheat demand used for feed when it hits the market.
US export sales are up 45% compared with same
time last year.
China has purchased 10 times the amount they had
at the same
stage last year at 3.45 mill t. USDA expects Chinese
imports at8.5 mill t in 13/14 up from 3.2 mill t in
12/13.
Reports of cold weather in Brazil possibly damaging
somewinter wheat, although some suggest damage
will be minimal.
Brazil has bought 1.2 mill t of US wheat, up from
50,000t a year
earlier. Expectations are Brazil will remain a strong
importer until their harvest given Argentina supply is
tight.
CBOT Corn
Sept futures down 4.00 USc/bu at 492.00 USc/bu.
Dec 13 down 2.75 USc/bu at 476.00 USc/bu, settled
5.00 USc/bu from the high and 1.00 USc/bu from the
low Friday night.
Corn tried to move higher with wheat early in the
session, but a wave of old crop cash selling in the US
pulled futures lower.
The early sown corn crops in the south of the US
have reportedly begun harvest with yields looking
good. This saw holders of old crop flock to the market
to sell ahead of the impending new crop supply which
saw cash prices in the US plummet relative to CBOT
futures (basis weakened).
Large sowings in the US with the crop generally
getting through pollination unscathed also continues
to weigh on values.
211,328t US corn was reported sold to an unknown
with
203,200t in the 13/14 marketing year. Many think it is
Mexico which may be a reasonable importer this year
due to drought.
CBOT Soybeans
Aug futures down 5.50 USc/bu at 1349.75 USc/bu.
Nov 13 up 4.50 USc/bu at 1228.50 USc/bu, settled
3.00 USc/bu from the high and 21.00 USc/bu from the
low Friday night.
CBOT soybeans ended slightly higher on Friday night
after getting smacked lower the night before.
Traders were generally taking stock from the heavy
price action and China stepped up to buy 220,000t of
13/14 US soybeans to help provide support to values.
Keeping pressure on prices is a US soybean crop in
generally good condition and forecasts that will keep it
that way.
Reports of US basis also getting hammered lower as
old crop
supply pushes cash values lower.
ICE Canola / Matif ****seed
ICE Nov13 up C$3.20/t to C$496.90/t, settled
$1.60/t from the high and $8.30/t from the low Friday
night. August Matif down at €5.25 at €356.75 and
Nov13 at €363.75, down €5.25.
ICE canola managed some gains on Friday as traders
exited sold positions given the declines of the past 2
weeks.
profarmer@nzx.com
Insightful market news/info from these folks... well
worth the subscription! Right Mallee!
CBOT Wheat
Sept futures up 1.00 USc/bu at 650.25 USc/bu. Dec
13 up 0.75 USc/bu at 661.50 USc/bu, settling 7.25
USc/bu from the high and 2.00 USc/bu from the low
Friday night.
CBOT wheat found some support Friday night on
thoughts the global balance sheet may need to tighten
a little further if India and Russian production is
revised lower and China continue to import strongly.
The downward pressure on prices continues to come
from an expected large corn crop, which will take away
wheat demand used for feed when it hits the market.
US export sales are up 45% compared with same
time last year.
China has purchased 10 times the amount they had
at the same
stage last year at 3.45 mill t. USDA expects Chinese
imports at8.5 mill t in 13/14 up from 3.2 mill t in
12/13.
Reports of cold weather in Brazil possibly damaging
somewinter wheat, although some suggest damage
will be minimal.
Brazil has bought 1.2 mill t of US wheat, up from
50,000t a year
earlier. Expectations are Brazil will remain a strong
importer until their harvest given Argentina supply is
tight.
CBOT Corn
Sept futures down 4.00 USc/bu at 492.00 USc/bu.
Dec 13 down 2.75 USc/bu at 476.00 USc/bu, settled
5.00 USc/bu from the high and 1.00 USc/bu from the
low Friday night.
Corn tried to move higher with wheat early in the
session, but a wave of old crop cash selling in the US
pulled futures lower.
The early sown corn crops in the south of the US
have reportedly begun harvest with yields looking
good. This saw holders of old crop flock to the market
to sell ahead of the impending new crop supply which
saw cash prices in the US plummet relative to CBOT
futures (basis weakened).
Large sowings in the US with the crop generally
getting through pollination unscathed also continues
to weigh on values.
211,328t US corn was reported sold to an unknown
with
203,200t in the 13/14 marketing year. Many think it is
Mexico which may be a reasonable importer this year
due to drought.
CBOT Soybeans
Aug futures down 5.50 USc/bu at 1349.75 USc/bu.
Nov 13 up 4.50 USc/bu at 1228.50 USc/bu, settled
3.00 USc/bu from the high and 21.00 USc/bu from the
low Friday night.
CBOT soybeans ended slightly higher on Friday night
after getting smacked lower the night before.
Traders were generally taking stock from the heavy
price action and China stepped up to buy 220,000t of
13/14 US soybeans to help provide support to values.
Keeping pressure on prices is a US soybean crop in
generally good condition and forecasts that will keep it
that way.
Reports of US basis also getting hammered lower as
old crop
supply pushes cash values lower.
ICE Canola / Matif ****seed
ICE Nov13 up C$3.20/t to C$496.90/t, settled
$1.60/t from the high and $8.30/t from the low Friday
night. August Matif down at €5.25 at €356.75 and
Nov13 at €363.75, down €5.25.
ICE canola managed some gains on Friday as traders
exited sold positions given the declines of the past 2
weeks.