Chicago Grains Rally Attempt Largely Fizzles Out
25/08/15 -- Soycomplex: Beans closed with small gains, but well off the intra-day highs. By "Turnaround Tuesday" standards this proved to be a pretty modest affair at the end of the day. News that China had cut interest rates for the fifth time since November, and cut bank reserve requirements, added a bit of support to a nervous soybean market hovering around multi-year lows. The USDA announced another 210,000 MT of beans were sold to unknown destinations for 2015/16 delivery, presumed to be China. "Unknown" was in the market yesterday for 120,000 MT as well. Farmers in Argentina started a 5-day strike yesterday, disruptions in supplies are expected to be minimal though. Sep 15 Soybeans closed at $8.94 1/4, up 1 1/2 cents; Nov 15 Soybeans closed at $8.77 3/4, up 3 3/4 cents; Sep 15 Soybean Meal closed at $327.60, up $1.20; Sep 15 Soybean Oil closed at 26.82, up 27 points
Corn: The market closed around 3-4 cents lower. The Chinese stimulus measures announced today are seen as being more of benefit to soybeans than to corn. The US remains wet, and the forecast looks cooler. "Western Iowa was hit with strong thunderstorms last week that produced 3 - 5 inches of rainfall. Small pockets of excessive rainfall also developed in Illinois, Wisconsin and Missouri in an unstable weather pattern. The Midwest cumulative rainfall in July and August has now reached 7.7 inches, 14% above normal. Recall that record heavy rainfall developed previously, in June, causing historic flooding in Missouri, Illinois, Indiana and Ohio and damaging corn prospects. With one week to go in August, the forecast continues wet for the Upper Midwest. Heavy rain is predicted in South Dakota, Minnesota, northern Iowa and Wisconsin. Welcome drying is predicted in the Great Lakes and eastern Midwest. Strong cooling is predicted providing the first real taste of fall. Temperatures are projected to fall 6-12 F below normal the next 3-4 days," said Martell Crop Projections. Sep 15 Corn closed at $3.65 1/2, down 3 1/4 cents; Dec 15 Corn closed at $3.77, down 3 1/2 cents.
Wheat: The market closed around 7-10 cents lower across the three exchanges as early attempts to rally fizzled out. The USDA reported that the spring wheat and barley harvests are well advance compared with normal last night, and demand for both is slack. The Canadian harvest is also reported to be moving along smoothly. Russia is now past halfway done on their wheat harvest at 55.4% complete producing a crop of 46.4 MMT to date, according to their Ag Ministry. Average yields are said to be down more than 8% at 3.11 MT/ha. APK Inform said that Russian sellers had more or less withdrawn from the market due to the falling rouble and current duty on wheat exports. Winter planting in Russia for the 2016 harvest is almost 9% complete on 1.5 million ha. In Ukraine, they've harvested around 70% of the planted area, producing a grain crop of 37 MMT to date. The 2015 Ukraine corn harvest is yet to start. Winter planting for next year's harvest is already said to be 70% complete on 5.77 million ha. Jordan cancelled a tender for optional origin wheat for Nov/Dec shipment. Taiwan purchased 49,400 MT of US wheat. Sep 15 CBOT Wheat closed at $4.95, down 8 1/4 cents; Sep 15 KCBT Wheat closed at $4.66, down 9 3/4 cents; Sep 15 MGEX Wheat closed at $4.96 3/4, down 7 3/4 cents.
