Chicago Closing Comments - Thursday
13/11/14 -- Soycomplex: Beans closed a little higher, with the largest gains in the deferred positions. Fresh news was a little lacking, with the usual weekly export sales report delayed until tomorrow. Sales for beans are expected to be over the 1MMT mark. Meal sales could be negative it is thought. MDA CropCast trimmed their forecast for the US soybean crop slightly, down by 0.25 MMT to 107.49 MMT. They were unchanged on Brazil and Argentina at a little over 91 MMT and 56 MMT respectively. Grain Growers of Canada said that the 2015 Canadian canola planted area will be unchanged from the 2014 area. Nov 14 Soybeans closed at $10.50 1/2, up 2 1/4 cents; Jan 15 Soybeans closed at $10.53 1/2, up 5 3/4 cents; Dec 14 Soybean Meal closed at $393.50, down $1.50; Dec 14 Soybean Oil closed at 32.07, down 15 points.
Corn: The corn market posted decent gains of around 8 cents. Heavy fund buying was a feature, with them booking an estimated net 20,000 contracts on the day. The CME Group reported that yesterday's traded volume in corn was the third highest in history. Increased tensions in Ukraine May be one factor encouraging them back. MDA CropCast cut their US corn production forecast by 1.4 MMT To 369.7 MMT. They also cut China by 1.7 MMT to 215.4 MMT and Argentina by 1.5 MMT to 22.3 MMT. There were however increases for Brazil, up 3.2 MMT to 77.2 MMT and for Ukraine, up 1.6 MMT to 26.8 MMT. Trade estimates for tomorrow's weekly export sales report are around 500-750 TMT. Dec 14 corn closed at $3.86 1/4, up 8 1/2 cents; Mar 15 corn closed at $3.98 3/4, up 8 1/4 cents.
Wheat: The wheat market added to yesterday's gains, helped by fund money stepping in for an estimated 6,000 lots in Chicago wheat. Ideas that US winter wheat is at risk from the sub-zero temperatures gripping the Plains continues to add support. So too does the notion that all is not well with the Russian winter wheat crop, plus increased military activity in Eastern Ukraine. South Korea's KFA cancelled a tender to import 50,000 MMT of optional origin feed wheat. Japan bought 127,355 MMT of food wheat for Dec-Jan shipment of mostly US origin. MDA CropCast estimated the US 2015 wheat crop at 63 MMT versus 56 MMT this year. They see Russia's crop at 54.2 MMT next season (compared to 56.9 MMT this year), with Ukraine's down from 24.2 MMT to 23.2 MMT. Trade estimates for tomorrow's weekly export sales report are around 300-450 TMT. Dec 14 CBOT wheat closed at $5.53 3/4, up 11 cents; Dec 14 KCBT wheat ended at $6.05 1/4, up 6 cents; Dec 14 MGEX wheat closed at $5.84 1/4, up 3 cents.
Corn: The corn market posted decent gains of around 8 cents. Heavy fund buying was a feature, with them booking an estimated net 20,000 contracts on the day. The CME Group reported that yesterday's traded volume in corn was the third highest in history. Increased tensions in Ukraine May be one factor encouraging them back. MDA CropCast cut their US corn production forecast by 1.4 MMT To 369.7 MMT. They also cut China by 1.7 MMT to 215.4 MMT and Argentina by 1.5 MMT to 22.3 MMT. There were however increases for Brazil, up 3.2 MMT to 77.2 MMT and for Ukraine, up 1.6 MMT to 26.8 MMT. Trade estimates for tomorrow's weekly export sales report are around 500-750 TMT. Dec 14 corn closed at $3.86 1/4, up 8 1/2 cents; Mar 15 corn closed at $3.98 3/4, up 8 1/4 cents.
Wheat: The wheat market added to yesterday's gains, helped by fund money stepping in for an estimated 6,000 lots in Chicago wheat. Ideas that US winter wheat is at risk from the sub-zero temperatures gripping the Plains continues to add support. So too does the notion that all is not well with the Russian winter wheat crop, plus increased military activity in Eastern Ukraine. South Korea's KFA cancelled a tender to import 50,000 MMT of optional origin feed wheat. Japan bought 127,355 MMT of food wheat for Dec-Jan shipment of mostly US origin. MDA CropCast estimated the US 2015 wheat crop at 63 MMT versus 56 MMT this year. They see Russia's crop at 54.2 MMT next season (compared to 56.9 MMT this year), with Ukraine's down from 24.2 MMT to 23.2 MMT. Trade estimates for tomorrow's weekly export sales report are around 300-450 TMT. Dec 14 CBOT wheat closed at $5.53 3/4, up 11 cents; Dec 14 KCBT wheat ended at $6.05 1/4, up 6 cents; Dec 14 MGEX wheat closed at $5.84 1/4, up 3 cents.
