Michael's Feed
Jan 30, 2014

Corn up most in three weeks on big US export sales

CHICAGO, Jan 30 (Reuters) – U.S. corn futures jumped 1.5
percent on Thursday, heading for their largest gains in about
three weeks after government data showed larger-than-expected
export sales, analysts said.
Soybean and wheat also rose at the Chicago Board of Trade,
rebounding from recent lows amid strong weekly export sales
results for the crops in a U.S. Agriculture Department report.
CBOT March corn gained 6-1/2 cents to $4.34 per
bushel, touching the highest level in two weeks and closing in
on their first two-month streak of gains in 1-1/2 years.
“We were the cheapest corn in the world, just below Ukraine,
and it certainly showed up in the export sales,” said U.S.
Commodities analyst Don Roose. “Bull spreads have been working
on corn, so the market told you we were fighting for value.”
U.S. exporters sold 1.8 million tonnes of corn last week,
the largest amount in the current 2013/14 marketing season. Top
global corn buyer Japan purchased 797,800 tonnes of the grain,
USDA data showed.
The dip in prices earlier this month to the lowest level in
3-1/2 years has made corn more competitive in global markets
even as the strong demand has lifted futures by more than 6
percent since hitting the low watermark on Jan. 10.
“We’re in a market that’s moving to the top of the trading
range – there’s a little resistance all the way,” Roose added.
Corn futures hit a session high of $4.34-1/2 before hitting
resistance at their 100-day moving average.
CBOT March soybeans were 11-1/2 cents higher at
$12.80-3/4 per bushel, a gain of 0.9 percent after earlier
trading as low as $12.60. CBOT March wheat firmed by 3-3/4
cents to $5.55-1/4 as of 10:38 a.m. CST (1638 GMT).
U.S. soybean exports of 494,800 tonnes were below analyst
expectations in a Reuters poll but some traders were bracing for
a net negative result as importers “switch” supplies to Brazil.

The surge in corn futures coupled with the positive export
results helped lift soy futures from their 2-1/2 month low
notched early in the trading session amid harvest in Brazil.
“We are going to see increasing availability of South
American (soy) supplies in the coming weeks which is going to
relieve the near-term supply tightness,” said Luke Mathews,
commodities strategist at the Commonwealth Bank of Australia.
In Brazil, strong yields in the country’s top soy-growing
state Mato Grosso should guarantee a record harvest for the
country in the 2013/14 crop year.
The U.S. Department of Agriculture attache in Brazil on
Tuesday estimated the 2013/14 soybean crop there at 89.5 million
tonnes, above the USDA’s official forecast of 89 million tonnes
and sharply up from 81.6 million tonnes last year.
U.S. exports of all varieties of wheat totalled 794,900
tonnes, the largest since September and above the high end of
analyst estimates that ranged from 300,000 to 500,000 tonnes.

Jan 27, 2014

U.S. soymeal shipments surge amid Argentina peso plunge

Jan 24 (Reuters) – U.S. exporters shipped the most soymeal
in nearly 16 years last week as farmers in Argentina, the top
exporter of the animal feed, hoarded soybeans amid a plunging
peso, analysts said on Friday.

The U.S. exporters loaded out 398,591 tonnes of soymeal,
primarily to Asian destinations such as South Korea, Thailand
and the Philippines. That was the biggest weekly shipment since
April 1998, when exporters loaded 433,498 tonnes, according to
U.S. Agriculture Department data.

Jan 24, 2014

U.S. soymeal shipments hit record amid Argentina peso plunge

Jan 24 (Reuters) – U.S. exporters shipped a record amount of
soymeal last week as farmers in Argentina, the top exporter of
the animal feed, hoarded soybeans amid a plunging peso, analysts
said on Friday.

The U.S. exporters loaded out 398,591 tonnes of soymeal,
primarily to Asian destinations such as South Korea, Thailand
and the Philippines. That was the biggest weekly shipment based
on records dating back to 1990, according to U.S. Agriculture
Department data released on Friday.

Jan 8, 2014

US soy, corn premiums spike on winter shipping delays

CHICAGO, Jan 8 (Reuters) – Cash premiums for spot shipments
of corn and soybeans to processors around the U.S. Midwest rose
to four-month peaks on Wednesday as buyers scrambled for
supplies after stormy and frigid winter weather slowed
deliveries.

Basis bids for barge loads of soybeans delivered to export
elevators at the Gulf Coast also hit the highest levels since
September as ice clogged rivers in the central Midwest while
export demand for the oilseed remained strong.

Jan 8, 2014

U.S. ‘select’ beef price hits record as storms slow shipments

CHICAGO, Jan 8 (Reuters) – Prices for select-grade U.S.
wholesale beef hit a record-high on Wednesday for the fourth
straight day, as shipments of the meat slowed after a historic
winter storm in the United States prompted a surge in live
cattle prices, analysts said.

Higher-quality “choice” beef prices also climbed, rising to
the loftiest levels since hitting an all-time high in May, 2013,
U.S. Agriculture Department data showed.

Jan 8, 2014

Winter shipping delays send cash US soybean premiums to 4-mth peaks

CHICAGO, Jan 8 (Reuters) – Cash premiums for spot shipments
of soybeans to processors around the U.S. Midwest and export
elevators at the Gulf Coast rose to four-month peaks on
Wednesday as buyers scrambled for supplies amid a slowdown in
deliveries due to winter weather.

A bitter cold snap that sent temperatures to record or
near-record lows in the nation’s midsection early this week has
loosened its grip slightly, but shipping challenges remained.

Jan 2, 2014

Bunge ethanol plant sale reflects doubt over EPA mandate

Jan 2 (Reuters) – Bunge North America Inc, a division of
Bunge Ltd, has sold its stake in a Mississippi ethanol
plant in what is likely to be the first a spate of industry
deals amid uncertainty over biofuel use in the United States,
analysts said on Thursday.

Ethanol makers are turning big profits now, but the future
is cloudy with the U.S. Environmental Protection agency expected
early this year to reduce the mandate to mix biofuels with
gasoline in what would be the first cut in the 2007 Renewable
Fuel Standard, or RFS.

Dec 12, 2013

U.S. traders fear rejection of corn byproduct by GMO-wary China

Dec 12 (Reuters) – China has already rejected three cargoes
of U.S. corn because of an unapproved GMO variety and now U.S.
exporters are concerned some shipments of dried distillers’
grains, a corn byproduct, may be rejected for the same reason,
trade sources said.

The concerns were tied to ideas China, the world’s leading
importer of commodities, will increase testing for MIR162, the
unapproved variety commonly known as Agrisure Viptera corn by
Syngenta AG.

Dec 11, 2013

US ethanol profit margins hit records even as biofuels cut looms

CHICAGO, Dec 11 (Reuters) – U.S. ethanol markers are seeing
their best profit margins in more than five years on strong
demand for the biofuel and cheap corn despite a looming
reduction to the federal biofuels program, analysts and traders
said on Wednesday.

The price of corn, the main feedstock used to produced
ethanol in the United States, is hovering near a three-year low
while ethanol prices have been buoyed by demand to meet
the mandate requiring nearly every gallon of gasoline sold in
the country to be mixed with the grain-based fuel additive.

Nov 27, 2013

Analysis: High-ethanol gas – Not coming to a pump near you

CHICAGO (Reuters) – A month ago, Steve Walk was on the brink of deals to sell two big oil refiners some of his company’s specialized oil pumps, which serve up fuel that is 85 percent ethanol, a biofuel made mostly from corn.

Walk’s company, Protec Fuel, sells and installs the equipment needed to dispense so-called E85. The deals would have nearly doubled Protec’s business, he said. The number of stations across the United States dispensing E85, which is a rarity despite the growing use of biofuels, would have jumped by 10 percent.