Chicago Soyoil Closes At Lowest Levels Of 2013 So Far
26/02/13 -- Soycomplex: Talk remains that the Chinese government may be about to release 1.5-2.5 MMT of soybeans onto the domestic market from state reserves. There's talk also of more South American, possibly Paraguayan, soybeans being sold into the US. The IGC have estimated the 2012/13 global soybean crop at a record 269 MMT, and increase of 13% on last year. Oil World estimated Europe's January – September 2013 soymeal imports at 17.5 MMT, up 8% from 16.21 MMT in the same period in 2012. Brazil's harvest is moving on at pace. News that dock workers there will not strike again before Mar 15 has calmed nerves a little, although shipping delays of 1-1 1/2 months still remain. Fund selling in beans was estimated at 4,000 contracts on the day. Mar 13 Soybeans closed at USD14.47 3/4, down 3 1/2 cents; May 13 Soybeans closed at USD14.31 3/4, down 3 1/2 cents; Mar 13 Soybean Meal closed at USD427.70, up USD2.10; Mar 13 Soybean Oil closed down 105 points at 49.02 - the lowest level of the year so far.
Corn: The market recovered somewhat from oversold conditions on profit-taking. The weekly ethanol production and inventory report is out tomorrow and the bulls will be hoping for the daily grind to improve on last week's 797,000 barrels/day. Talk continues of some of the plants that have been idled over the past few months coming back into production as margins have improved in the last couple of weeks. IMEA said as of Feb 21 Mato Grosso’s second corn crop is 64% planted versus 41% a week previously and 81% a year ago. Tender interest for US corn remains thin with Japan reportedly buying US SRW wheat to use as feed as an alternative to corn. Japan's corn in feed usage has been falling slowly but steadily in recent months, with wheat inclusion increasing likewise. America's share of Japanese imports has also been falling. India keep offloading their surplus wheat stocks ahead of harvesting which starts at the end of March, again stealing Asian interest away from US corn. Funds were said to have bought 8-10,000 corn contracts on the day. Mar 13 Corn closed at USD7.05, up 11 1/2 cents; May 13 Corn closed at USD6.94 3/4, up 9 1/4 cents.
Wheat: The wheat market followed corn higher, but not very convincingly. India’s STC tendered to sell 200 TMT of wheat on the government's behalf. China are due to auction wheat from state-owned reserves tomorrow. Taiwan are in the market for 93,680 MT of US wheat for April/May shipment. Japan bought 50 TMT of US milling wheat for April shipment for feed usage at prices said to be around USD15/tonne cheaper than the best bid in India's latest tender. Despite recent sales activity, with another bumper harvest coming up India’s June 1st wheat and rice stocks are expected to reach 100 MMT. They are said to only have indoor storage for 47.0 MMT of grains. The Russian Grain Union said that winter wheat conditions are currently worse than they were a year ago. Russia sold 62,215 MT of intervention grain today, making the total sold since sales began in October to 2.0 MMT. Domestic stocks are dwindling fast. Funds were said to have been net buyers of around 3-4,000 Chicago wheat contracts on the day. Mar 13 CBOT Wheat closed at USD7.05 3/4, up 6 1/2 cents; Mar 13 KCBT Wheat closed at USD7.32 3/4, up 1 1/4 cents; Mar 13 MGEX Wheat closed at USD7.89, up 2 cents.
