Chicago Up, Led By Beans, On Strong Export Sales
23/10/14 -- Soycomplex: Beans closed sharply higher, and near the highs of the day, with fund money estimated as being a net buyer of around 15,000 lots during the session. Very strong weekly export sales of 2.17 MMT were around double what the trade was expecting. China took 1.7 MMT of that total. Exports of almost 1.9 MMT were mostly for China (1.3 MMT) too. The USDA also reported the sale of 118 TMT of US soybeans to China under the daily reporting system. The delayed US harvest is keeping the front end tight. "A weak disturbance is tracking across the heartland this morning, expected to produce light rainfall. A stronger storm is predicted Sunday night- Monday producing heavy, soaking rains to Minnesota, Wisconsin, Nebraska and South Dakota, 0.75 – 1.2 inches. Unseasonably warm temperatures would continue 7-10 F above normal in the heartland," say Martell Crop Projections. Meanwhile things are finally looking up in Brazil. "The rainy season may be finally beginning in Mato Grosso, Brazil’s top soybean state. October conditions have been unusually dry, increasing the soil moisture deficit to 75 millimeters (3 inches). Recurring showers are predicted for the next several days increasing field moisture for soybean planting. Temperatures would moderate, backing off to 95 F, from 103-105 F previously," they add. Nov 14 Soybeans closed at $9.93 1/4, up 30 1/2 cents; Jan 15 Soybeans closed at $10.00, up 30 1/4 cents; Dec 14 Soybean Meal closed at $352.40, up $14.40; Dec 14 Soybean Oil closed at 32.67, up 53 points.
Corn: The corn market posted decent gains. Weekly export sales of just over 1 MMT beat trade expectations of 650-800 TMT. Exports of 676,700 MT were primarily to Mexico (194,400 MT), Colombia (111,100 MT), Japan (106,900 MT), Venezuela (64,000 MT) and Peru (50,500 MT). Russia said that it had harvested 8.9 MMT of corn off 2 million hectares, or 74.2% of the planned area. Yields are averaging 4.55 MT/ha versus 5.28 MT/ha a year ago. Ukraine said that they'd harvested 16.36 MMT of corn off 65% of the planned area. The Argentine Ag Ministry forecast 2014 corn plantings there down 9.8% at 5.5 million hectares. Plantings are 24% complete versus 19% this time a year ago. "The work is carried out with good soil moisture conditions, which are also suitable for crop emergence," they said. The Argentine government authorised an extra 500 TMT of corn for export yesterday, meaning that they've now issued export licences for almost 15 MMT of corn this season. Delayed full season soybean planting in Brazil is likely to have a knock-on effect for safrinha corn yields next year it is thought. China were said to have imported 539,000 MT of DDGs in September, down 11% from August. Turkey bought 5,000 MT of Russian origin corn. Dec 14 Corn closed at $3.59 3/4, up 6 3/4 cents; Mar 15 Corn closed at $3.73 1/2, up 6 1/2 cents.
Wheat: The wheat market closed mostly a little higher, in sympathy with the other pits. Unlike corn and beans though, weekly export sales of just under 300 TMT failed to impress. Actual shipments of 431,700 MT were also down 11 percent from the previous week and 21 percent below the prior 4-week average. The Argentine Ministry estimated the wheat area there at 4.6 million hectares, up 26% on a year ago. The harvest is now underway in one or two places, they said. The Buenos Aires Grain Exchange see Argentine wheat plantings at half a million hectares less than that. They forecast production up 14% this year at 11.5 MMT. They say that the harvest is 2.4% complete. Japan bought 109,715 MT of US/Australian milling wheat for Nov-Dec shipment. Turkey bought 3,000 MT of Russian origin wheat. Israel bought 5,000 MT of Ukraine wheat for November shipment. Taiwan are tendering for 41,250 MT of US milling wheat for December shipment. The Ukraine Ag Ministry said that winter wheat plantings there were now 97% complete on an area of 6 million hectares. Russia said that it's winter grain area was 98.4% complete on 16.2 million hectares. The 2014 Russian wheat harvest is 94.4% done at 61 MMT in bunker weight, they added. Dec 14 CBOT Wheat closed at $5.26 3/4, up 4 1/2 cents; Dec 14 KCBT Wheat closed at $6.05 1/4, unchanged; Dec 14 MGEX Wheat closed at $5.71, up 2 1/4 cents.
