Karl's Feed
Jun 6, 2014

Corn, wheat bounce from 3-month lows on short-covering

CHICAGO, June 6 (Reuters) – U.S. corn futures jumped 1.5
percent on Friday in the strongest gains in a month on technical
buying and short-covering after sinking to a three-month low the
previous day. Still, they remained on pace for a fourth straight
weekly decline.

Hard red winter wheat futures surged more than 2 percent on
concerns about adverse weather in some key production areas,
including Russia’s Volga Valley and the southern U.S. Plains.
The rally helped to lift soft red winter wheat from three-month
lows.

Jun 5, 2014

DuPont signs up U.S. Midwest colleges for big data services for farms

June 5 (Reuters) – DuPont Pioneer has signed up eight
U.S. Midwest universities to work on research into nitrogen use
on farms, the latest in a flurry of deals by agriculture firms
looking to reap the benefits of the data collection from farm
machines.

The seed and chemicals company will provide some funding for
the research and equipment and technology for the schools,
according to the three-year agreement announced on Thursday.

Jun 5, 2014

Corn, soybeans tumble on good crop weather, fund selling

CHICAGO, June 5 (Reuters) – U.S. corn futures dropped for a
fourth straight day on Thursday, hitting the lowest point since
February, as favorable Midwest crop weather bolstered
expectations for a bumper harvest this autumn and triggered fund
selling.
Soybean prices fell 1 percent to the lowest in more than two
weeks, led by deferred-month contracts after the U.S. Department
of Agriculture reported lower-than-expected new-crop export
sales last week.
Wheat fell for the 19th time in 21 sessions and hit a
three-month low on poor export demand and a generally favorable
global crop outlook ahead of the northern hemisphere winter crop
harvest.
Traders were rolling positions out of July contracts to
deferred months, ahead of position rolling by a large fund
expected to begin on Friday.
“We’re starting to see some profit taking and some position
moving ahead of the roll, and we’re seeing some people exit the
market,” said Karl Setzer, analyst with MaxYield Cooperative.
“The market’s trying to find a weather issue, not just in
the United States but anywhere around the world, and it’s just
not there,” he said.
The large long position held by commodity funds in both corn
and soybeans made them susceptible to fund selling.
Chicago Board of Trade July corn fell 5-1/2 cents, or
1.2 percent, to $4.50-3/4 a bushel by 11:00 a.m. CDT (1600 GMT),
the contract’s lowest since Feb. 14.
CBOT July soybeans shed 16-1/4 cents, or 1.1 percent,
to $14.66-1/4 a bushel. Selling accelerated as the contract
broke below its 50-day moving average around $14.73-1/2.
USDA on Thursday reported U.S. old-crop corn export sales
last week at the high end of trade expectations at 550,700
tonnes, but new-crop sales were below forecasts at 19,600
tonnes.
Old-crop soybean export sales totalled 41,300 tonnes, within
trade expectations. But new-crop sales of 230,500 tonnes were
well below forecasts for 500,000 to 750,000 tonnes.
CBOT July wheat fell 6-1/2 cents, or 1.1 percent, to a
three-month low of $6.08 a bushel.
Analytics firm Informa Economics updated its U.S. winter
wheat production estimates at midmorning, pegging production at
1.396 billion bushels – down 100 million from its previous
estimate – but the data garnered little reaction in the futures
market.
U.S. wheat is facing stiff competition from rival exporters
such as Russia and Ukraine, which have been winning much of the
tender business.
“Any strength in U.S. wheat prices would largely serve to
make exports from the country uncompetitive. Therefore, we
expect prices to be capped unless there is a supply shock
elsewhere in the world,” Societe Generale said in a report.

RIC Name Last Pct Chg Net Chg Close
1Cc1 CORN JUL4 451.00 -1.15 -5.25 456.25
1Sc1 SOYBEANS JUL4 1466.50 -1.08 -16 1482.5
1SMc1 SOY MEAL JUL4 493.70 -0.56 -2.8 496.5
1BOc1 SOYBEAN OIL JUL4 38.63 -1.58 -0.62 39.25
1Wc1 WHEAT SRW JUL4 608.25 -1.02 -6.25 614.5
1RRc1 ROUGH RICE JUL4 14.115 -0.77 -0.11 14.225
BL2c1 M.WHEAT EUR NOV4 190.75 -0.26 -0.5 191.25
CLc1 LIGHT CRUDE JUL4 102.37 -0.26 -0.27 102.64
.DJI DJ INDU AVERAGE 16820.77 0.5 83.24 16737.53
XAU= GOLD 1254.19 #N/A 11.39 1242.8
.BADI BALTIC EXCH DRY 977 1.88 18 959
.DXY US DOLLAR INDEX 80.542 -0.15 -0.121 80.663

Jun 2, 2014

Blackhawks fall narrowly short in brave Cup defense

By Karl Plume

(Reuters) – The Chicago Blackhawks saw their hopes of a second consecutive Stanley Cup triumph dashed in heartbreaking fashion with a 5-4 overtime loss to the Los Angeles Kings in a deciding Game Seven of their Western Conference Finals on Sunday.

Chicago won the opener of a thrilling series between the last two Stanley Cup champions but lost the next three, leaving no room for error against a Kings team armed with an opportunistic offense and bruising defense.

May 30, 2014

Illinois budget with income tax revenue hole passes

, May 30 (Reuters) – The Illinois Senate
gave final approval to the state’s $35.7 billion fiscal 2015
budget on Friday, sending the governor a spending plan that
plugs a big tax revenue hole with one-time measures.

Temporary income-tax rate hikes, passed in 2011 in the midst
of one of the state’s budget pinches, are set to partially
expire on Jan. 1, causing an estimated $2 billion revenue
decline in the fiscal year that begins on July 1. Yet the budget
bills, which were passed by the Democratic-controlled House on
Tuesday, keep most spending flat despite the projected revenue
decline.

May 27, 2014

Brazilian soybeans reach U.S. East Coast, more cargoes en route

May 27 (Reuters) – Two bulk shipments of Brazilian soybeans
arrived at the U.S. ports of Wilmington, North Carolina, and
Norfolk, Virginia, over the weekend, the first large South
American shipments to hit the U.S. East Coast this season,
Reuters shipping data showed.

They were the latest shipments since two cargoes arrived at
the U.S. Gulf Coast early last month, starting the country’s
biggest wave of soy imports in history, with about 2 million
tonnes expected to reach U.S. shores over the next two months.

May 23, 2014

Soybeans slide, corn firms in pre-holiday consolidation

CHICAGO, May 23 (Reuters) – U.S. soybean futures eased on
Friday as investors unwound spreads and squared positions ahead
of the Memorial Day holiday weekend, but the market remained
poised for its strongest weekly advance in five weeks.

Wheat fell for the fourth straight day and hit a 10-1/2 week
low on weak demand and abundant global supplies. Corn firmed on
bargain buying and as traders unwound long soybean and short
corn spreads.

May 22, 2014

Soybeans soar to contract highs on demand, tight supplies

CHICAGO, May 22 (Reuters) – U.S. soybeans rallied for a
second straight session on Thursday, with old-crop futures
hitting contract highs as relentless demand stoked worries about
shrinking short-term supplies in the United States.
Corn edged higher after hitting an 11-week low in the
previous session on spillover support from soybeans, but prices
remained anchored by favorable weather in the U.S. Midwest that
allowed farmers to wrap up planting of this year’s crop.
Wheat slumped to a 10-week low on technical selling and weak
demand for U.S. wheat, while signs of improving crop weather in
the U.S. wheat belt further weighed on prices.
Soybeans have climbed nearly 4 percent in two days, fuelled
by steady export demand and a soaring soymeal market <0#SM:>,
which posted across-the-board contract highs on Thursday.
“The fact that soybean export sales weren’t negative is
beneficial and we saw another good round of soybean meal as
well, which is quite supportive,” said Sterling Smith, a futures
specialist with Citigroup.
The U.S. Department of Agriculture said exporters sold a net
615,600 tonnes of U.S. soybeans last week, including 164,400
tonnes of old-crop supplies, and 350,300 tonnes of soymeal, the
most in nine weeks.
The soy complex also got a lift from China’s factory sector,
which posted its best performance in five months in the HSBC
Flash China Manufacturing Purchasing Managers’ Index.

China is the world’s top soybean importer.
Chicago Board of Trade July soybeans gained 23 cents,
or 1.5 percent, to $15.28-1/4 a bushel by 10:53 a.m. CDT (1553
GMT) after earlier hitting a contract high of $15.36-3/4, the
loftiest level for a spot contract since July 2013. The
August and September contracts also posted contract highs.
CBOT July corn added 1-1/4 cents, or 0.3 percent, to
$4.75-3/4 a bushel, holding above its 200-day moving average of
$4.73.
Soybeans’ gains lifted corn as the ratio between the
new-crop November soybean contract and the new-crop
December corn contract, which could influence farmers’
planting decisions this spring, widened to its highest of the
season.
Comfortable global wheat supplies and stiff competition in
export markets for U.S. supplies dragged wheat futures lower,
with CBOT July wheat shedding 7 cents, or 1.1 percent, to
$6.57-1/4 a bushel.
Technical selling below the contract’s 200-day moving
average of $6.58 a bushel dragged prices to the lowest since
March 11.

May 21, 2014

Soybeans rebound on tight U.S. stocks, persistent demand

CHICAGO, May 21 (Reuters) – U.S. soybean futures jumped more
than 1 percent on Wednesday in a bargain-buying bounce from the
prior session’s steep declines and on concerns about tight U.S.
supplies ahead of the autumn harvest.

Corn futures were mixed after sinking to an 11-week low
earlier in the session, weighed down by this week’s rapid U.S.
planting pace and adequate old-crop supplies.

May 20, 2014

Soybeans climb on thin U.S. supplies, surging soymeal

CHICAGO, May 20 (Reuters) – Soybean futures climbed for a
second day on Tuesday, supported by razor-thin U.S. supplies
ahead of the next harvest and soaring soymeal prices.
Corn futures slumped for a fifth straight session and
notched a 2-1/2 month low as good Midwest weather accelerated
planting progress following early-season delays.
Hard wheat futures clung to early-session gains on eroding
winter crop conditions and slower-than-expected spring crop
planting progress, but soft red winter wheat failed to hold
gains on slow export demand and adequate global supplies.
Soymeal futures posted across-the-board contract highs as a
lack of crushing supplies over the coming months were expected
to force some processors to halt production despite strong
domestic and export demand.
“We’ve got about a 14-day supply of soybeans, based on
USDA’s latest report. If we don’t slow down exports and don’t
bring imports in, it’s probably more like 10 days,” said Mike
Zuzolo, president of Global Commodity Analytics.
Chicago Board of Trade July soybeans rose 8-3/4 cents,
or 0.6 percent, to $14.94 a bushel by 10:57 a.m. CDT (1557 GMT)
after earlier climbing above $15 a bushel for the first time in
2-1/2 weeks.
July soymeal gained $7.30, or 1.5 percent, to $497.80
per ton after earlier hitting a contract high of $499.10.
The U.S. Department of Agriculture late said on Monday that
U.S. soybeans were 33 percent planted as of Sunday, short of the
average mid-May pace of 38 percent planted.
Corn seeding has accelerated despite recent rains, and
warmer and drier weather this week will further speed planting
progress. USDA said the corn crop was 73 percent planted as of
Sunday, just behind the seasonal average of 76 percent.
July corn futures fell 2 cents, or 0.4 percent, to a
2-1/2 month low of $4.75-1/4 a bushel after sinking below its
100-day moving average of $4.76-1/2. Traders are eyeing the next
support level around $4.73 a bushel, the 200-day moving average.
Deteriorating winter wheat crop conditions and delayed
spring crop seeding fueled early-session strength in wheat, but
the markets failed to hold the gains as sluggish export demand
and abundant global wheat stocks weighed on prices.
USDA said on Monday that winter wheat, stressed by dry
conditions in the U.S. Plains was rated just 29 percent good to
excellent, down 1 percentage point from a week earlier.
The USDA also reported spring wheat planting was 49 percent
complete, behind expectations for 52 percent.
Chicago Board of Trade July wheat futures fell 4-3/4
cents, or 0.7 percent, to $6.69-3/4 a bushel, the contract’s
ninth decline in 10 sessions. July hard red winter wheat
was up 1/4 cent at $7.69 a bushel, while Minneapolis spring
wheat was 1-3/4 cents higher at $7.40-1/2 a bushel.

Prices at 10:59 a.m. CDT (1559 GMT)

LAST NET PCT YTD
CHG CHG CHG
CBOT corn 475.50 -1.75 -0.4% 12.7%
CBOT soy 1493.75 8.25 0.6% 13.8%
CBOT meal 497.80 7.30 1.5% 13.7%
CBOT soyoil 40.09 -0.33 -0.8% 3.3%
CBOT wheat 669.75 -4.75 -0.7% 10.7%
CBOT rice 1530.00 -2.50 -0.2% -1.4%
EU wheat 199.00 1.75 0.9% -4.8%