Michael's Feed
Feb 7, 2015

Tempers flare as CME execs meet members over futures pit closure

CHICAGO, Feb 6 (Reuters) – Dozens of angry CME Group members
abruptly left a meeting with CME Group Inc on Friday,
saying executives were dismissive and largely failed to answer
questions about the exchange’s plans to close most open-outcry
futures markets.

It was the first of two members-only sessions in Chicago and
New York to address this week’s announcement by CME Group that
most open-outcry futures markets will be closed by July 2 due to
dwindling trading volumes.

Feb 6, 2015

Flashy jackets of Chicago traders may soon exist only on the silver screen

CHICAGO, Feb 5 (Reuters) – For tailor Peter Papageorge,
making the vibrant jackets worn by traders on the floors of
exchanges in Chicago and New York used to be the bulk of his
business. Now, it is pretty much a novelty as the old-fashioned
open outcry trading shrivels and dies.

Papageorge’s family founded Peco Inc, based on the southwest
side of Chicago, in 1919. The company bills itself as the
largest manufacturer of the flashy trading jackets that are as
colorful as the language shouted by traders in the pits.

Jan 16, 2015

Corn rallies 1 pct on bargain buying, export demand

CHICAGO, Jan 16 (Reuters) – U.S. corn jumped 1 percent on
Friday, rebounding from a nearly two-month low on support from
short covering and increasing export demand and trimming
declines from earlier this week.
Wheat futures were also higher on bargain buying, on their
way to a fourth straight weekly decline, while soybean futures
were narrowly mixed in light volume after top importer China
cancelled a large purchase of U.S. soybeans.
The gains in agriculture commodities were part of a broad
rally with crude oil and stocks higher ahead of the
three-day weekend for Martin Luther King Jr. Day on Monday.
“It’s a corrective rally. Crude is higher. The corn basis is
firm and probably some export business being done near the
100-day moving average,” said independent trader Ken Smithmier.
The U.S. Department of Agriculture earlier said exporters
sold 101,600 tonnes of U.S. corn to unknown destinations, in the
fourth announcement of a sale of 100,000 tonnes or more in a
week.
USDA also said China cancelled purchases of 285,000 tonnes
of U.S. soybeans.
Chicago Board of Trade March corn futures were up 5
cents at $3.85 per bushel as of 10:40 a.m. CST (1640 GMT). The
contract tested its 100-day moving average on Wednesday when
prices fell to the lowest level since November, prompting a
round of buying by importers such as Japan, South Korea and
Taiwan.
Corn still was on pace for a weekly decline of 3.7 percent.
CBOT March wheat climbed 3-1/4 cents to $5.36 but was
heading for a weekly drop of about 5 percent – the largest since
September. Prices for the grain remained anchored by poor export
demand, with U.S. wheat too expensive to compete for business in
many top global markets including Egypt.
“The downward trend on U.S. wheat has become more and more
pronounced. The correction has already taken it halfway towards
the $5 floor due to fact that U.S. wheat is not competitive,”
Alexis Poullain of French consultancy Agritel said.
Soybeans for March delivery edged 1-1/2 cents lower to
$9.89-1/2 per bushel, near the lowest level since Oct. 27 on
pressure from the China cancellation and expectations of record
production in South America.

Name Last Pct Net Pvs
Change Change Close
CORN MAR5 385 1.32 5 380
SOYBEANS MAR5 989.5 -0.15 -1.5 991
SOY MEAL MAR5 326.6 -0.03 -0.1 326.7
SOYBEAN OIL MAR5 33.18 0.58 0.19 32.99
WHEAT SRW MAR5 536 0.61 3.25 532.75
ROUGH RICE MAR5 11.35 0.18 0.02 11.33
M.WHEAT EUR MAY5 197 1.16 2.25 194.75
LIGHT CRUDE FEB5 47.58 2.88 1.33 46.25
DJ INDU AVERAGE 17378.6 0.33 57.89 17320.71
BALTIC EXCH DRY 741 -1.07 -8 749
US DOLLAR INDEX 92.922 0.62 0.57 92.352

Jan 15, 2015

Soybeans fall to 2-1/2 month low on disappointing U.S. crush

CHICAGO, Jan 15 (Reuters) – U.S. soybeans reversed from
earlier gains to fall more than 2 percent on Thursday, pressured
by weakening soymeal futures and smaller-than-expected private
crushing data.

Wheat futures extended their worst downturn in six months on
lackluster export demand for U.S. supplies while corn was
little-changed after declining to a five-week low in the
previous session.

Jan 14, 2015

Corn falls to 5-week low on big ethanol supply, technicals

CHICAGO, Jan 14 (Reuters) – U.S. corn fell 1 percent on
Wednesday, extending declines from the past two sessions to the
largest in 1-1/2 years on pressure from chart-based selling and
ballooning supplies of grain-based ethanol.

Wheat had its sixth straight down day, pulled lower by
plentiful global supplies of wheat and corn. Soybeans reversed
from an earlier six-week low to turn higher on support from
exporter demand for U.S. supplies despite looming record South
American soy harvests.

Jan 13, 2015

Corn down 2 pct, soy extends declines on long liquidation

CHICAGO, Jan 13 (Reuters) – U.S. corn fell 2 percent and
soybean futures extended declines on Tuesday as plentiful global
stockpiles triggered liquidation of long positions by investment
funds, traders and analysts said.
Chicago Board of Trade March soybeans edged lower,
reaching a new one-week low after their worst session losses
since June on Monday, when the U.S. Department of Agriculture
predicted record-large global soy supplies.
“The (USDA) bean report was flatout bearish. That’s a tough
one to overcome,” said EFG Group analyst Tom Fritz.
Both soybean and corn futures had “outside days” on the
charts on Monday – soybeans lower and corn higher – in technical
indicators that typically hint at price direction. However, corn
failed to reach a new high despite the bullish chart formation,
sparking a selloff.
“We had the technical impetus to move higher but we’re
negating the outside up day,” said Top Third Ag Marketing
analyst Mark Gold.
USDA in its quarterly stocks report on Monday pegged
domestic corn supplies at the largest ever, but reduced the
yield of last year’s harvest to below analyst expectations.
Analysts are preparing now for looming South American harvests
and the upcoming corn and soybean planting season that will not
start for a month or more.
Meanwhile, outside markets were bearish for crop prices,
with crude oil nearing a six-year low while near-decade highs in
the dollar index could keep a lid on exports priced in
the greenback.
As of 11:26 a.m. CST (1726 GMT), CBOT March corn was
down 8-1/4 cents at $3.93-3/4 per bushel, heading for its
largest daily declines in about a week.
CBOT March soybeans were down 2-3/4 cents at
$10.13-1/4.
CBOT March wheat edged 1 cents higher to $5.56-1/2 per
bushel, with smaller U.S. planting data underpinning prices.
“We know what the fundamental picture is – there is a lot of
wheat in the world – so the USDA was a confirmation of that,” a
European trader said. “The U.S. wheat acreage was definitely a
supportive factor.”

Prices at 11:26 a.m. CST (1726 GMT)

LAST NET PCT YTD
CHG CHG CHG
CBOT corn 393.75 -8.25 -2.1% -6.7%
CBOT soy 1013.25 -2.75 -0.3% -22.8%
CBOT meal 353.80 -2.70 -0.8% -19.2%
CBOT soyoil 32.56 0.11 0.3% -16.1%
CBOT wheat 556.50 1.00 0.2% -8.1%
CBOT rice 1142.50 -3.50 -0.3% -26.3%
EU wheat 196.00 1.50 0.8% -6.2%

Jan 2, 2015

China seeking U.S. distillers’ grains for Feb-March -trade

CHICAGO, Jan 2 (Reuters) – China is seeking U.S. cargoes of
distillers’ dried grains (DDGs) for shipment in February and
March, as easing import restrictions have re-opened the most
lucrative market for the protein-rich animal feed, traders said
on Friday.

“My regular buyers are coming back. We’re getting new
inquiries as well,” said a U.S. trader of DDGs, a byproduct of
corn-based ethanol.

Dec 30, 2014

U.S. sorghum exports at 19-year high on record China demand

CHICAGO, Dec 29 (Reuters) – Roaring Chinese demand for cheap
animal feed helped fuel the largest week of grain sorghum sales
seen by U.S. exporters in nearly two decades, U.S. Agriculture
Department data showed Monday.

China’s appetite for the corn substitute is expected to
remain strong for the time being, despite Beijing’s recent
approval of one GMO corn variety, possibly signaling a renewed
appetite for U.S. corn imports and expanding a lucrative market
for American farmers.

Dec 17, 2014

China GMO corn approval not seen as windfall for U.S. exporters

CHICAGO, Dec 16 (Reuters) – Despite molding corn stocks and
unreliable alternate suppliers, China is not expected to
immediately revive U.S. corn imports following Beijing’s
expected approval of a biotech variety responsible for a
year-long halt to shipments.

U.S. corn prices hit five-month peaks this week, partly on
reports that Chinese approval of Syngenta AG’s
Agricure Viptera corn could come in the near future and that
this could also help sales of dried distiller’s grains (DDGs), a
corn-based animal feed, into their biggest market.

Dec 12, 2014

U.S. distillers’ grains trade shrugs off Turkish rejections

Dec 12 (Reuters) – Rejections of U.S. distillers’ dried
grain (DDGs) shipments, first by China and then by Turkey, are
isolated events and not a sign of broader trade disruptions to
come, U.S. traders and industry sources said on Friday.

The U.S. Grains Council on Thursday confirmed that Turkey
has rejected three shipments of the feed ingredient and ethanol
byproduct as it steps up enforcement of rules on imports of
genetically modified corn. A fourth cargo was diverted from the
No. 6 buyer of U.S. DDGs.