Chicago Grains End Higher
20/09/16 -- Soycomplex: Beans closed with decent gains. Palm oil hit one year highs in Malaysia, and soyoil responded with one month highs of it's own. "As the month of September draws to an end it is becoming apparent the veg oil s/d is tighter than was previously forecast by the trade and the USDA," said FCStone. The USDA announced export sales of 110,000 MT of soybeans for delivery to China during the 2016/17 marketing year under the daily reporting system. They are expected to be an active buyer ahead of the Golden Week holiday that starts on Oct 1. Wet weather in the forecast for the US will continue to delay early harvesting attempts, keeping old crop supply and demand tight. Nov 16 Soybeans settled at $9.89 3/4, up 17 1/4 cents; Jan 17 Soybeans settled at $9.94 3/4, up 17 cents; Oct 16 Soybean Meal settled at $313.10, up $1.20; Oct 16 Soybean Oil settled at 33.83, up 100 points.
Corn: Corn closed around 3 cents higher. The fledgling US harvest is running behind schedule and the current wet weather forecast offers little chance of it making up lost ground soon. That's viewed as supportive by the market, as are US exports running well ahead of year ago levels, helped by tightness in supply in South America. China only sold 1,800 MT of the 1.2 MMT of government owned corn supplies offered up at auction. Much, if not all, of these stocks are 3-5 years old hence end user reluctance with new crop availability just around the corner. Russia said that it's 2016 corn harvest was 16.5% complete at 2.5 MMT. Ukraine's new crop corn is 10% done at 2 MMT. Final production is estimated as high as 26 MMT. Ukraine's export effort will soon switch to corn. Stats Canada estimated Canadian corn production at 13 MMT, down 2.9% from last year. December CBOT corn closed above the 50 day moving average for the first time since June 21st tonight. Dec 16 Corn settled at $3.40 1/2, up 3 1/4 cents; Mar 17 Corn settled at $3.50 3/4, up 3 1/4 cents.
Wheat: Wheat closed mixed. Higher trade in corn and beans provided some support. Stats Canada came out with production numbers of 31.3 MMT for all wheat and 20.5 MMT for spring wheat. That was about what the trade was expecting. Russia's wheat harvest reportedly stands at 72.4 MMT off 90.5% of the combinable area. Yields are said to be averaging 2.89 MT/ha, up 9% versus 2.65 MT/ha a year ago. The Russian barley harvest stands at 18.4 MMT off 93.1% of plan. Plantings for the 2017 harvest are already said to be 56.1% complete. US winter wheat plantings are just getting going at 16% done, according to the USDA. Low prices and a general disenchantment with the crop could see growers plant the smallest area in more than 100 years, according to some estimates. US dollar strength remains a thorn in the side of potential wheat exports. Some analysts are predicting a Fed interest rate rise tomorrow, which won't help any. Platts reported that Indian buyers have booked around 500,000 MT of Ukraine wheat "under the radar" in the past 6 weeks as availability of state-owned supplies tightens. Dec 16 CBOT Wheat settled at $4.06, up 2 cents; Dec 16 KCBT Wheat settled at $4.18 1/2, up 2 cents; Dec 16 MGEX Wheat settled at $4.91 1/4, down 1 1/4 cents.
