Mark's Feed
Mar 18, 2015

Bargain buying props up soybeans; corn, wheat fall

CHICAGO, March 18 (Reuters) – U.S. soybean futures edged
higher on Wednesday on a round of bargain buying and
short-covering after prices fell near five-month lows on
Tuesday, traders said.

Corn and wheat were lower, weighed down by plentiful global
supplies and weakening export demand for U.S. supplies.

Mar 16, 2015

Weather concerns spur buying in U.S wheat; corn, soy fall

CHICAGO, March 16 (Reuters) – U.S. wheat futures rose for
the sixth time in seven sessions on Monday on concerns about dry
conditions in the U.S. Plains hindering growth as the winter
wheat crop emerges from dormancy.

Corn futures sagged 1.3 percent on pressure from
lower-than-expected U.S. export inspections data. Soybeans also
dropped as traders anticipated huge U.S. plantings of the
oilseed in the coming months.

Mar 10, 2015

USDA cuts world, U.S. corn stocks view as exports heat up

WASHINGTON, March 10 (Reuters) – U.S. and world corn
supplies are projected to be smaller than expected by the end of
the marketing year due to rising export demand, the U.S.
Agriculture Department said on Tuesday.

The government also left its outlook for domestic soybean
supplies unchanged and lowered U.S. wheat stocks by just 1
million bushels in its monthly supply and demand report.

Mar 10, 2015

USDA cuts world, corn stocks view due to robust exports

WASHINGTON, March 10 (Reuters) – U.S. and world corn
supplies were projected to be smaller than expected by the end
of the marketing year due to rising export demand, the U.S.
Agriculture Department said on Tuesday.

The government also left its outlook for domestic soybean
supplies unchanged and lowered U.S. wheat stocks by just 1
million bushels in its monthly supply and demand report.

Feb 10, 2015

USDA cuts U.S. supply view for corn, soybeans as demand rises

WASHINGTON, Feb 10 (Reuters) – U.S. soybean supplies were
tighter than expected due to rising demand on both the domestic
and export fronts, according to government data released on
Tuesday.

Domestic corn stocks also were forecast to be smaller than
previously thought as increased usage by ethanol producers and
the food, seed and industrial sector overcame reduced demand
from the feed sector, the U.S. Agriculture Department said in
its monthly supply and demand report.

Jan 23, 2015

U.S. corn gains on export sales; wheat flat

CHICAGO, Jan 23 (Reuters) – U.S. corn futures firmed on
Friday on support from bigger-than-expected U.S. export sales,
traders said.
“The exports are pretty important,” said Bill Gentry, broker
at Risk Management Commodities in Lafayette, Indiana. “(They
show) the corn has got some value at these and lower levels.”
Soybeans dipped, with the market consolidating near
three-month lows as the harvest from South American comes on
line. Wheat was mostly flat after climbing from overnight lows
on bargain buying.
Any signs of strength across the sector were kept in check
by ample supplies as well as a firm U.S. dollar, which hit an
11-year high against the euro and threatened to roil overseas
demand for U.S. supplies.
Chicago Board of Trade corn for March delivery was up
3 cents at $3.87-3/4 a bushel at 10:44 a.m. CST (1644 GMT). CBOT
March wheat was 1/2 cent higher at $5.34-1/4 a bushel.
Corn was on pace to close unchanged for the week. Wheat was
on track for a weekly gain of 0.4 percent, which would snap a
streak of four straight losses.
The U.S. Agriculture Department said on Friday morning that
weekly export sales of corn were a robust 2.19 million tonnes,
topping analysts’ forecasts that ranged from 800,000 to 1
million tonnes. Wheat export sales totalled 564,400 tonnes,
which also beat trade expectations.
CBOT March soybeans were down 2-1/4 cents at $9.74-1/2
a bushel. Prices have fallen 1.7 percent so far this week.
The strength in the dollar cast a bearish tone across U.S.
commodities. The euro fell to fresh 11-year lows against the
dollar on Friday following the European Central Bank’s
announcement on Thursday that it would pump a trillion euros
into the euro zone economy to revive sagging growth and ward off
deflation.
“Currency markets continue to garner most of the excitement
this week, as the dollar has definitely had a negative effect on
the grains,” Matt Zeller, director of market information at INTL
FCStone said in a note to clients.
Name Last Pct Change Net Change Pvs Close
CORN MAR5 386.75 0.78 3 383.75
SOYBEANS MAR5 974.5 -0.23 -2.25 976.75
SOY MEAL MAR5 332.2 0.64 2.1 330.1
SOYBEAN OIL MAR5 31.62 -1.09 -0.35 31.97
WHEAT SRW MAR5 534.25 0.09 0.5 533.75
ROUGH RICE MAR5 11.155 -0.04 -0.005 11.16
M.WHEAT EUR MAY5 198.75 0.38 0.75 198
LIGHT CRUDE MAR5 46.14 -0.37 -0.17 46.31
DJ INDU AVERAGE 17760.77 -0.3 -53.21 17813.98
GOLD LBMA 1290.23 #N/A -11.27 1300.98
BALTIC EXCH DRY 720 -4.13 -31 751
US DOLLAR INDEX 94.53 0.48 0.453 94.077
In U.S. cents, benchmark contracts, except EU wheat (euros) and
soymeal (dollars).

(Additional reporting by Naveen Thukral in Singapore and Nigel
Hunt in London; , Editing by David Evans and Meredith Mazzilli)

Jan 21, 2015

U.S. corn falls from one-week high; soybeans firm

CHICAGO, Jan 21 (Reuters) – U.S. corn futures slipped from a
one-week high on Wednesday on ample global supplies, traders
said.
Soybean futures edged higher, with bargain buyers picking
prices up from their lowest since October even as concerns about
dry weather culling crop production in South America eased.
“Despite recent talk of drier-than-normal weather across
Brazil, most local observers still see soybean production on
track to set new records,” Morgan Stanley analyst Bennett Meier
said in a note to clients.
Brazilian crop analysts Celeres pegged the country’s 2014/15
soy crop at a record 94.2 million tonnes, up 3 percent from its
August forecast.
The expectations for a huge crop kept the gains in soybeans
in check and the market fluctuated between positive and negative
territory several times during the session.
Strength in soymeal futures also added support. Traders on
the cash market noted a pick-up in export demand for U.S.
soymeal due to higher-than-expected prices for South American
supplies.
Chicago Board of Trade March soybeans, the most
actively traded oilseed contract, were up 1-3/4 cents at
$9.83-3/4 a bushel at 11:35 a.m. CST (1735 GMT). Deferred
contracts firmed slightly.
CBOT March corn was 2 cents lower at $3.88-1/4 a
bushel.
Wheat was mixed, with soft red winter wheat firming for the
second day in a row. High-protein spring wheat and hard red
winter wheat were lower due to bigger-than-expected supplies in
the U.S. countryside.
CBOT March soft red winter wheat was up 1-1/2 cents at
$5.38-1/2 a bushel. MGEX spring wheat was off 7-1/4
cents at $5.82-1/4 a bushel and K.C. hard red winter wheat for
March delivery was down 4 cents at $5.73-3/4 a bushel.
The Minneapolis Grain Exchange said on Wednesday there were
19.4 million bushels of wheat in its storage warehouse in
Duluth, a 1.9 million bushel increase from a week earlier.

In Brazil, a cold front has broken into Brazil’s southeast
and center-west agricultural areas, Somar meteorologists said on
Wednesday, ending at least 20 days of unseasonably hot, dry
weather.
Name Last Pct Change Net Change Pvs Close
CORN MAR5 388.25 -0.51 -2 390.25
SOYBEANS MAR5 983.25 0.13 1.25 982
SOY MEAL MAR5 329.7 0.98 3.2 326.5
SOYBEAN OIL MAR5 32.49 -1.07 -0.35 32.84
WHEAT SRW MAR5 538.25 0.23 1.25 537
ROUGH RICE MAR5 11.325 0.53 0.06 11.265
M.WHEAT EUR MAY5 198.25 0.89 1.75 196.5
LIGHT CRUDE MAR5 47.59 2.41 1.12 46.47
DJ INDU AVERAGE 17555.62 0.23 40.39 17515.23
GOLD LBMA 1291.9 #N/A -1.66 1293.56
BALTIC EXCH DRY 770 2.26 17 753
US DOLLAR INDEX 93.025 -0.02 -0.021 93.046
In U.S. cents, benchmark contracts, except EU wheat (euros) and
soymeal (dollars)

Jan 20, 2015

U.S. soy pressured as export interest shifts; wheat, corn also weak

CHICAGO, Jan 20 (Reuters) – Chicago Board of Trade soybean
futures slid 1.7 percent to their lowest in nearly three months
on Tuesday as export demand for U.S. supplies weakened ahead of
what are expected to be record harvests in Brazil and Argentina,
traders said.
The weakness in soybeans spilled into the corn market, while
wheat eased to a 10-week low on forecasts for good weather for
crop development in the U.S. Plains.
The U.S. Agriculture Department said on Tuesday that
exporters canceled the sale of 174,000 tonnes of soybeans that
were to be shipped to China in the 2014/15 marketing year. USDA
also reported the cancellation of deals for 285,000 tonnes of
soybeans on Friday.
“We are starting to see a trend here of our biggest demand
input beginning to shift their program to the Southern
Hemisphere. And that’s a big deal,” said Terry Linn, analyst at
the Linn Group, a brokerage in Chicago.
Overseas buyers were banking on bumper crops from South
America to further bolster the global balance sheet and push
prices lower.
“If the forecast holds for Brazil into early February it
will be difficult to appreciably reduce their crop potential,”
CHS Hedging market analyst Charles Soule said in a note to
clients.
CBOT March soybean futures were down 18 cents at $9.73-3/4 a
bushel at 11:15 a.m. CST (1715 GMT). Prices bottomed out at
$9.72-1/4, the lowest since Oct. 27, earlier in the session.
CBOT March corn was 3/4 cent lower at $3.86-1/4 a
bushel, while March soft red winter wheat shed 2-3/4 cents
to $5.30 a bushel. Wheat futures have fallen in eight of the
last nine sessions.
K.C. March hard red winter wheat dropped 6 cents to
$5.71, with the front-month contract hitting its lowest
since Oct. 3.
“A storm will push across the South this week, providing the
southwest one-third of Plains wheat with beneficial moisture,”
according to a forecast from Commodity Weather Group.
In Brazil, the main crop areas will see a cold weather front
arrive by Thursday followed by rainfall, meteorologists said on
Monday, suggesting relief for parched soybean crops as
harvesting gets under way.
Name Last Pct Change Net Change Pvs Close
CORN MAR5 386 -0.26 -1 387
SOYBEANS MAR5 973.75 -1.81 -18 991.75
SOY MEAL MAR5 321.9 -1.32 -4.3 326.2
SOYBEAN OIL MAR5 32.87 -1.56 -0.52 33.39
WHEAT SRW MAR5 530.25 -0.47 -2.5 532.75
ROUGH RICE MAR5 11.265 -0.62 -0.07 11.325
M.WHEAT EUR MAY5 195 -0.64 -1.25 196.25
LIGHT CRUDE FEB5 46.89 -3.7 -1.8 48.69
DJ INDU AVERAGE 17381.2 -0.74 -130.37 17511.57
GOLD LBMA 1295.81 #N/A 19.11 1276.7
BALTIC EXCH DRY 753 1.89 14 739
US DOLLAR INDEX 92.938 0.45 0.418 92.52
In U.S. cents, benchmark contracts, except EU wheat (euros) and
soymeal (dollars).

(Additional reporting by Naveen Thukral in Singapore and Gus
Trompiz in Paris; Editing by Michael Urquhart and Peter
Galloway)

Jan 9, 2015

Corn, soy firm, but wheat weak ahead of USDA report

CHICAGO, Jan 9 (Reuters) – U.S. corn and soybean futures
firmed on Friday, supported by strong export demand, while wheat
weakened slightly as traders evened up positions ahead of a key
U.S. government report on crop production and supplies, traders
said.
“Ahead of the report, we are going to go into more of a
consolidation phase right now,” said Brian Hoops, president of
U.S. brokerage Midwest Market Solutions. “We will not see any
major moves.”
On Monday, the U.S. Department of Agriculture will publish
its world grain supply and demand forecasts, quarterly U.S.
grain stocks estimates and a first estimate of the 2015 U.S.
wheat area.
Chicago Board of Trade soft red winter wheat dipped to a
fresh six-week low during the overnight session, with U.S.
offerings seen too expensive to attract export business amid
ample global supplies.
At 10:41 a.m. CDT (1641 GMT), CBOT March wheat was 1/4
cent lower at $5.66-3/4 a bushel. Prices have fallen 2.6 percent
so far this week, their third straight week of declines.
CBOT March corn was 4 cents higher at $3.98-1/4 a
bushel, on track for a 0.6 percent weekly gain. Front-month corn
has risen in six of the past seven weeks.
USDA said that private exporters reported the sale of
136,000 tonnes of corn to South Korea, as well as 116,000 tonnes
of sorghum to unknown destinations.
Traders noted some bargain buying in corn after the March
contract dipped below its 50-day moving average during the
overnight session. The contract has not closed below that key
technical level since October.
Corn had fallen for three straight days, prompting some
short-covering although traders noted resistance at the $4 a
bushel level.
CBOT soybeans for March delivery were 1/4 cent higher
at $10.48-1/2 a bushel. The front-month contract was on
track to post a weekly gain of 4.4 percent, its biggest since
late October.
Name Last Pct Change Net Change Pvs Close
CORN MAR5 398 0.95 3.75 394.25
SOYBEANS JAN5 1046.75 0.17 1.75 1045
SOY MEAL JAN5 361.4 0.03 0.1 361.3
SOYBEAN OIL JAN5 33.63 0.15 0.05 33.58
WHEAT SRW MAR5 566.25 -0.13 -0.75 567
ROUGH RICE JAN5 11.35 0.49 0.055 11.295
M.WHEAT EUR MAR5 196 -0.38 -0.75 196.75
LIGHT CRUDE FEB5 47.65 -2.34 -1.14 48.79
DJ INDU AVERAGE 17726.11 -1.01 -181.76 17907.87
GOLD LBMA 1216.91 #N/A 8.28 1208.63
BALTIC EXCH DRY 709 -2.07 -15 724
US DOLLAR INDEX 91.974 -0.43 -0.394 92.368
In U.S. cents, benchmark contracts, except EU wheat (euros) and
soymeal (dollars).

(Additional reporting by Gus Trmpiz in Paris and Naveen Thukral
in Singapore; Editing by Joseph Radford, David Evans and Peter
Galloway)

Jan 8, 2015

U.S. wheat, corn drop on weak exports

CHICAGO, Jan 8 (Reuters) – U.S. wheat futures fell 1.3
percent to a six-week low on Thursday on poor export demand and
easing concerns about crop damage despite sub-zero temperatures
settling in across key U.S. growing regions, traders said.
“Yes, it did get very cold overnight,” Joe Barker, market
analyst at CHS Hedging said in a note to clients. “But I would
say that it was generally not quite as cold as forecasted. I
have already seen reports from private forecasters that are
walking back their initial concerns about winterkill.”
Forecasts called for the deep freeze to last for the next
few days. Warming temperatures are expected to arrive early next
week.
Weak exports also weighed on corn, which fell for the
seventh time in eight sessions. Soybean futures eased on a mild
profit-taking setback after overnight strength pushed prices to
a 10-day high.
Wheat came under pressure following a U.S. Agriculture
Department report that showed weekly export sales for the
2014/15 marketing year came in at a disappointing 151,000
tonnes.
The decision by Egypt’s GASC to once again bypass U.S.
supplies in their latest tender in favor of 180,000 tonnes of
French wheat added to the bearish export prospects.

Chicago Board of Trade soft red winter wheat for March
delivery was down 7-3/4 cents at $5.71-3/4 a bushel at
11:10 a.m. CDT (1710 GMT). The session low of $5.70 was the
lowest for the front-month contract since Nov. 28.
CBOT March corn was 3/4 cent lower at $3.95-1/2 a
bushel, with traders citing technical weakness after the market
failed to hold overnight gains.
“Corn is developing a weak look about it. Again it cannot
sustain above $4 (a bushel),” Tobin Gorey, director of
agriculture strategy for the Commonwealth Bank of Australia,
said in a note to clients.
Strength in the dollar, which held at nine-year highs
against a currency basket, and caution ahead of closely watched
government crop estimates kept bargain hunters on the sidelines.

    • About Mark

      "I cover grain futures out of Chicago, with a focus on the wheat market. Examining the effects of world crop production on prices and the vagaries of export demand for U.S. supplies takes up most of my time. Previously, I was a reporter on the equities desk in New York and I got my start as a news assistant in the Washington Bureau."
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