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Feb 19, 2015

New USDA report shows increased corn use for ethanol, less sorghum

Feb 19 (Reuters) – Use of U.S. corn in ethanol production
increased 5 percent in December while sorghum use for biofuel
tumbled 57 percent from the previous month, the U.S. Department
of Agriculture said in a new monthly report on Thursday.

The so-called Grain Crushings and Co-Products Production
report was the first in a suite of monthly reports that will be
launched this year, with flour milling and cotton warehouse
stock reports coming out in May followed by a soybean crushings
report in August. Some of the reports were discontinued in 2011
due to budget cuts.

Feb 17, 2015

Soy hits 1-month high on soymeal gains, NOPA; wheat choppy

CHICAGO, Feb 17 (Reuters) – U.S. soybeans climbed to a
one-month peak on Tuesday, lifted by a 2 percent spike in
soymeal futures and data showing near-record domestic crushings
of the beans in January, traders said.
Wheat futures were mixed, with some contracts turning lower
after earlier hitting three-week highs on a short-covering
bounce. Corn was narrowly higher in thin volume on the first
trading day of the week following Monday’s U.S. Presidents Day
Soymeal futures <0#SM:> posted the largest gains at the
Chicago Board of Trade, with active soymeal-soyoil spreading
also weighing on soyoil <0#BO:> as investors positioned ahead of
the National Oilseed Processors Association’s monthly release.
The NOPA data, released at 11 a.m. CST (1700 GMT), showed
the U.S. soybean crush at 162.675 million bushels in January,
near the average analyst estimate and the biggest ever for the
CBOT March soybeans were up 8 cents to $9.98-1/2 per
bushel as of 11:45 a.m., after earlier rising to $9.99-3/4 – one
tick below the psychological threshold of $10. Soy prices
remained anchored by record-large crops in South America, where
farmers were in the early phases of harvest.
CBOT March wheat was up 2 cents at $5.35 per bushel
after earlier trading as high as $5.48 while CBOT March corn
was flat at $3.87-1/2.
Wheat was bolstered by worries that bitter cold conditions
could hamper portions of the dormant crop not protected by
snowcover in the southern U.S. Midwest.
“For the next two or three mornings, through Friday, there
is going to be threats of zero to -10 (F) below readings in
those winter wheat areas,” said meteorologist Dan Hicks of
Freese-Notis Weather in Iowa.
However, U.S. grain remained uncompetitive in many global
export markets, with cheaper wheat and corn shipped out of the
Black Sea and South America stealing away some of the United
States’ market share.
Russia may export more than 2 million tonnes of wheat
between February and June as traders have to fulfill previously
agreed contracts despite recently imposed export curbs, SovEcon
agriculture analysts said.

Prices at 11:45 a.m. CST (1745 GMT)

CBOT corn 387.25 0.00 0.0% -8.2%
CBOT soy 998.50 8.00 0.8% -23.9%
CBOT meal 339.60 7.30 2.2% -22.4%
CBOT soyoil 31.91 -0.49 -1.5% -17.8%
CBOT wheat 535.00 2.00 0.4% -11.6%
CBOT rice 1064.00 11.50 1.1% -31.4%
EU wheat 189.50 -0.50 -0.3% -9.3%

Feb 10, 2015

Corn eases from 3-week high in pre-USDA data lull

CHICAGO, Feb 10 (Reuters) – U.S. corn, soybeans and wheat
fell as much as 1 percent on Tuesday as investors adjusted
positions ahead of U.S. government crop estimates, due at
midday, that should confirm ample global grain supply.
Agricultural futures at the Chicago Board of Trade also came
under pressure from tumbling crude oil futures and a rising U.S.
dollar. Corn eased after climbing to a three-week high on
“Losses in the outside markets… are spilling over into the
commodities,” MaxYield Cooperative analyst Karl Setzer said in a
note to clients. “There is very little interest in buying
anything ahead of the report numbers, which is not uncommon
after buying such as we have seen in recent sessions.”
CBOT corn for March delivery eased 3-1/4 cents to
$3.88 per bushel as of 10:30 a.m. CST (1630 GMT).
CBOT March soybeans were down 2-3/4 cents to $9.75-3/4
and CBOT March wheat 1-1/2 cents lower to $5.28-1/4.
The U.S. Department of Agriculture, in its monthly supply
and demand figures, was likely to make only minor adjustments to
its forecasts, and global grain supplies were ample in the early
days of bumper South American harvests, which follow record-high
U.S. corn and soy crops last autumn.
On Tuesday, Australia eased one of the few production
concerns in the wheat market when the world’s No. 4 exporter
raised its forecast for the just harvested 2014/15 wheat crop,
citing timely rains in key growing regions.
“The market is waiting to see what is going to happen in the
USDA report, obviously the trend has been of lower prices and
good supplies across the board,” Phin Ziebell, agribusiness
economist, National Australia Bank, said.
“Certainly, we have seen some welcome rains in the U.S. over
the past month and we haven’t seen the kind of conditions which
will result in a significant downward revision in yields.”
Soybeans drew some support earlier this week on news that
top soybean importer China purchased 120,000 tonnes, while
analysts at AgRural and FCStone reduced forecasts for the crop
in Brazil.
But forecasters still expect a record Brazilian harvest that
could dent export demand for U.S. soybeans.

Prices at 10:30 a.m. CST (1630 GMT)

CBOT corn 388.00 -3.25 -0.8% -8.1%
CBOT soy 975.75 -2.75 -0.3% -25.7%
CBOT meal 329.00 -0.60 -0.2% -24.8%
CBOT soyoil 31.63 -0.38 -1.2% -18.5%
CBOT wheat 528.25 -1.50 -0.3% -12.7%
CBOT rice 1025.00 -18.50 -1.8% -33.9%

Feb 9, 2015

U.S. corn, soy rise on short-covering ahead of USDA report

CHICAGO, Feb 9 (Reuters) – U.S. corn and soybean futures
edged higher on Monday, lifted by investor short-covering and
position-squaring ahead of the monthly U.S. Department of
Agriculture supply and demand report due on Tuesday.

The USDA said earlier that top soybean importer China
purchased 120,000 tonnes of the grain within 24 hours
, while analysts at AgRural and FCStone reduced
forecasts for the crop in Brazil.

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
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
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
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)

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%