Chicago Close; Beans Supported By Strong Export Sales
04/08/16 -- Soycomplex: Beans closed around unchanged. Weekly export sales of 542,200 MT for 2015/16 and 1,128,200 MT for 2016/17 were supportive. In addition the USDA reported sales of 252,000 MT of soybeans for delivery to China during the 2016/17 marketing year under the daily reporting system. Exports of 718,800 MT were up 16 percent from the previous week and 81 percent from the prior 4-week average. China are said to be planning to attempt to auction off 600 TMT of state-owned soybean reserves on Friday. US weather is mixed, but nevertheless a record large crop seems to be on the way. How record large the USDA will tell us next week. FCStone said 4.054 billion bushels earlier in the week. Informa are expected to release their numbers tomorrow. A Bloomberg survey into trader/analyst sentiment found 8 soybean bulls, 13 bears and 11 neutrals. Aug 16 Soybeans settled at $9.90 1/2, unchanged; Nov 16 Soybeans settled at $9.56 3/4, up 1 1/4 cents; Aug 16 Soybean Meal settled at $329.70, down $0.80; Aug 16 Soybean Oil settled at 30.54, up 24 points.
Corn: The market closed around 3-4 cents lower. The USDA reported 129,000 MT of corn for delivery to unknown destinations during the 2016/17 marketing year under the daily reporting system. Weekly export sales came in at 331,100 MT for 2015/16 and 896,300 MT for 2016/17. Exports were 1,138,500 MT were down 18 percent from the previous week and 11 percent from the prior 4-week average. In Brazil the Mato Grosso safrinha corn crop is 38% harvested and production is seen at only 6.2 MMT versus 9.1 MMT a year ago. Very low yields are being reported due to hot and dry conditions. The shortage of availability of safrinha corn is such that the Brazilian government are said to have agreed to allow 1 MMT of duty free US corn imports for the livestock sector between now and the end of October. China were said to have sold only 143,500 MT of state-owned corn reserves at auction out of an attempted offering of 3.2 MMT. A Bloomberg survey into trader/analyst sentiment found 8 corn bulls, 11 bears and 13 neutrals. Sep 16 Corn settled at $3.20 3/4, down 4 1/4 cents; Dec 16 Corn settled at $3.31, down 4 cents.
Wheat: The wheat market closed lower. Weekly export sales came in at only 326,500 MT for 2016/17 - down 36 percent from the previous week and 39 percent from the prior 4-week average. For 2017/18, net sales of 44,000 MT were reported for Nigeria. Exports of 578,200 MT were up 5 percent from the previous week and 30 percent from the prior 4-week average. The market is balancing EU wheat concerns against better than expected production from the US, Russia, Canada and Australia. There will be no shortage of wheat on offer for export in 2016/17, just a few different origins behind the offers. Russia alone look like having the product behind them to be very aggressive throughout the whole the season. Their crop is at 41.9 MMT so far off only 38.4% of the planned area. A Bloomberg survey into trader/analyst sentiment found 9 wheat bulls, 11 bears and 12 neutrals. Japan bought 62,952 MT of US wheat in their part tender. Sep 16 CBOT Wheat settled at $4.03 1/4, down 7 cents; Sep 16 KCBT Wheat settled at $4.05 3/4, down 6 1/2 cents; Dec 16 MGEX Wheat settled at $5.01, down 4 3/4 cents.
