Chicago Sharply Lower To Start The Week
06/05/13 -- Soycomplex: Weekly soybean export inspections were an uninspiring 6.422 million bushels versus 8.956 million last week and 13.141 million a year ago. News leaked out on Friday that Cargill are to close a crushing plant in Indiana until after the 2013 harvest due to poor margins and a shortage of beans was seen as bearish. China’s total April soybean crush was 4.68 MMT versus 4.97 MMT in March. Total crush volume for last week was just over 1 MMT, down 11.43% from a week previously. CNGOIC estimated China’s May bean imports at 5.6 MMT versus their April estimate of 4.2 MMT. Safras e Mercado said that 97% of the Brazilian soybean crop has been harvested, up from 94% a week ago and in line with progress this time last year. After the close the USDA said that 2% of the US 2013 soybean crop had been planted versus the 5-year average of 12% and 22% this time last year. That's a low number, but it wasn't a surprise. Fund selling in beans was estimated at around 4-5,000 contracts on the day. May 13 Soybeans closed at USD14.44 1/2, down 10 1/2 cents; Jul 13 Soybeans closed at USD13.69 1/4, down 18 cents; Nov 13 Soybeans closed at USD12.07 1/4, down 16 cents; May 13 Soybean Meal closed at USD413.10, down USD4.70; May 13 Soybean Oil closed at 48.69, down 47 points.
Corn: A drier weekend than anticipated and a decent forecast for much of the US corn belt in the week ahead should see planting progress improved markedly this week. That's what the market chose to concentrate on today, rather than the very tight old crop supply situation. After the close the USDA said that 12% of the national corn crop was planted, towards the bottom end of trade expectations, which may add a bit of support in the morning. The 5-year average is 47% and this time last year farmers had 69% of the crop in the ground. There's still time for a decent yield though, if summer weather conditions are benign. Weekly export inspections were only 6.506 million bushels versus the expected 11-13 million. CNGIOC said China’s 2012 total corn purchases for reserves totalled 24.70 MMT versus 10.0 MMT a year previously. Safras e Mercado estimated Brazil’s 2013 total corn crop at a record 78.4 MMT versus 72.7 MMT a year ago. Argentina’s Ag Ministry said that 39% of the Argentine corn crop has been harvested. South Korea's NOFI are in the market for 70 TMT of optional origin corn for September shipment, South American corn could be the favourite for that order. Fund selling in corn was estimated at a net 12-15,000 lots on the day, driving prices lower. May 13 Corn closed at USD6.78 3/4, down 20 3/4 cents; Jul 13 Corn closed at USD6.36 1/2, down 24 3/4 cents.
Wheat: Weekly export inspections for wheat came in at 16.639 million bushels, the trade was expecting 21-26 million. Spillover weakness from corn put wheat under pressure despite concerns for the 2013 US winter wheat crop. Those worries appeared to be justified when the USDA increased the percentage of the crop in poor/very poor condition up from 35% last week to 39% after the close. Maturity is lagging, which may ultimately prove to have helped keep damage from the recent series of freezes to a minimum however. Only 20% of the US winter wheat crop is headed versus 39% for the 5-year average. Spring wheat planting is only 23% complete versus 50% normally and 82% a year ago. Warmer weather is finally expected for the northern Plains and Canadian Prairies this week. The French Farm Ministry estimated the 2013 soft wheat planted area at 4.98 million hectares, up 2.4% from a year ago. Ukraine and Russia are dry, which is helping spring planting progress, but rain is needed soon to establish spring planted crops and advance winter wheat. Analysts are starting to get twitchy that the dryness in southern Russian in particular may soon start to hurt the crops there. Funds were estimated to have been net sellers of around 4,000 CBOT wheat contracts on the day. May 13 CBOT Wheat closed at USD6.93, down 18 1/4 cents; May 13 KCBT Wheat closed at USD7.68 3/4, down 21 1/4 cents; May 13 MGEX Wheat closed at USD8.51, down 7 1/2 cents.
