Chicago Grains Sink Ahead Of USDA Data
30/03/15 -- Soycomplex: Beans closed lower, as you mighty expect, consolidating from last night's 7-month closing highs, heading into tomorrow's all important USDA reports on stocks and prospective plantings reports. Those are projected to show March 1 US stocks at 1.557 billion bushels - which would be the largest stocks since 2007. The trade is also expecting an increase in soybean planted acres of 500-700,000 acres based on last year's 82.5 million. Trade estimates for tomorrow's weekly export sales report for beans are in the region of 250,000 to 400,000 MT. May 16 Soybeans settled at $9.09, down 7 cents; Jul 16 Soybeans settled at $9.16 1/4, down 6 1/2 cents; May 16 Soybean Meal settled at $271.90, down $1.30; May 16 Soybean Oil settled at 33.79, down 26 points.
Corn: The corn market closed with losses of around 5-6 cents, giving up yesterday's gains and then some. Tomorrow's USDA report is expected to show US corn stocks as of Mar 1 at 7.798 billion bushels versus last year's 7.750 billion, while planted acres are expected to be around 89-90 million for corn versus last year's 88 million. The weekly ES ethanol report had US production last week at 992,000 barrels per day, down 3,000 from the previous week. Brazil are said to have bought 500,000 MT of Argentine/Paraguayan corn for mostly April shipment. Livestock farmers, especially in the south there, are rumoured to be suffering from high domestic corn prices due to lower full-season production and record exports. Trade estimates for tomorrow's weekly export sales for US corn are 700,000 to 900,000 MT. May 16 Corn settled at $3.67, down 6 cents; Jul 16 Corn settled at $3.71 1/2, down 5 3/4 cents.
Wheat: The wheat market closed sharply lower. Tomorrow's USDA report is expected to be more about soybean and corn plantings, even if US all wheat sowings are estimated at 51.665 million acres, down sharply from last year’s 54.644 million and the lowest since 1970. US Mar 1 all wheat stocks are being called at 1.354 billion bu, up from the 2015 stocks of 1.140 billion. Trade estimates for tomorrow's weekly export sales are seen at a modest 175,000 to 225,000 MT. After that we are back to trading the weather. An improved weather forecast for the Southern Plains had fund money back in on the sell side today. Weather in Canada, Europe and most of the FSU now looks favourable for the time being for wheat. Morocco announced a tender for 360 TMT of soft wheat together with 45 TMT of durum and 8 TMT of corn for Apr/May delivery. Jul 16 CBOT Wheat settled at $4.71 1/2, down 12 1/4 cents; Jul 16 KCBT Wheat settled at $4.77, down 15 3/4 cents; Jul 16 MGEX Wheat settled at $5.23 1/4, down 7 cents.
