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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.

Dec 5, 2014

Harsh winter could reverse post-harvest grain freight slump

CHICAGO, Dec 5 (Reuters) – U.S. grain transportation costs
have slumped to multi-year lows as last winter’s weather-related
shipping problems have so far failed to materialize, but even a
modest cold snap could still overwhelm the nation’s train, barge
and truck network and send costs soaring again.

Food company Kraft Foods Group Inc warned recently
that industry wide logistic problems would drag on earnings, and
grain processor Archer Daniels Midland Co said this week
that rail service troubles could flare up in the first quarter
of 2015.

Dec 2, 2014

U.S. ethanol makers at record rate despite rare gasoline premium

CHICAGO, Dec 2 (Reuters) – U.S. ethanol production is likely
to continue at a record rate despite its rare premium to
gasoline as cheap corn, high biofuel prices and even cool
weather provide ideal conditions and strong profit margins.

“There’s no sign that says we should slow production. The
mentality is that everyone is running,” said Todd Becker, chief
executive of Green Plains Inc, the fourth-largest U.S.
ethanol producer behind Archer Daniels Midland Co, POET
LLC and Valero Energy Corp.

Nov 21, 2014

U.S. corn, soy rally on short-covering, cash markets

CHICAGO, Nov 21 (Reuters) – U.S. corn and soybeans edged
higher on Friday, expanding gains from the previous session as
investors covered short positions and domestic end users hiked
bids in efforts to entice sales by farmers.
Futures for each commodity traded in both positive and
negative territory at the Chicago Board of Trade amid steep
gains in the dollar that could curb export demand for U.S.
supplies. Wheat futures were mostly higher while soymeal was
narrowly lower.
CBOT December corn, which had its largest gains of the
month on Thursday, was up 3-1/2 cents to $3.76-3/4 per bushel,
bolstered by strong cash bids, especially from ethanol makers.
“This is one of those years that you have abundant (corn)
supplies on paper but the cash market is going to reflect a
short supply because it’s in the farmers’ hands. If they are not
willing to sell, the cash markets are going to be short,” said
Jefferies Bache analyst Shawn McCambridge.
Ethanol futures were up 4.2 percent, extending gains
after the U.S. Environmental Protection Agency said it will not
finalize biofuel targets for 2014 until next year.

McCambridge and other analysts said the EPA announcement had
little effect on the corn market. “We are on a projected path to
produce just shy of 14 billion gallons (of ethanol), with what
we’ve produced already and expectations of a decent production
through the end of the year.”
Soybeans for January delivery were up 4-3/4 cents at
$10.25-1/4 as of 11:20 a.m. CST (1620 GMT) while CBOT December
wheat climbed 3-1/4 cents to $5.50-1/2.
“It’s hard to be particularly bullish about corn and
soybeans when you are looking at record U.S. production,” said
Sebastien Techer of French consultancy Agritel.
“Export demand may help prevent prices from collapsing but
the U.S. supply balance is very heavy,” he said.
A rise in the dollar index was tied to a sharp drop
in the euro as investors reacted to comments by European
Central Bank chief Mario Draghi on declining inflation
expectations, which also curbed Chicago crop futures.
A strong dollar makes U.S. commodities more expensive
overseas, and has been a drag on U.S. wheat exports this season
in the face of stiff competition from western European and Black
Sea origins.