Corn export sales are now ahead of the pace needed to meet USDA expectations.
The market is expected to open at 8:30 AM CST today. This morning there was a reportable sale of 210,000 metric tons of corn to Japan for the 14/15 marketing year.
Export sales were released this morning, delayed a day due to the New Year’s holiday. Wheat sales were reported within analyst expectations with 354,100 metric tons booked for 14/15 delivery over the last week. Corn sales beat analyst expectations with 895,100 metric tons which brings cumulative sales to 26.9 million metric tons which is now ahead of pace to meet USDA expectations. Soybean export sales were on the lower side of expectations only booking 611,000 metric tons. However, soybean sales have been running well ahead of pace in the first four months of this year’s marketing season, and has already booked 88% of the sales expected for this marketing year.
Ethanol production was released on Wednesday showing that weekly ethanol production dropped 20,000 barrels per day to 972,000 BPD from the marketing year high reported last week. Ethanol stocks increased 479,000 barrels to 18.09 million barrels which was the largest stocks number since October 10th. The decline in production is due to the holiday week, but is also beginning to feel the effects of declining ethanol crush margins. Over the last two weeks ethanol margins fell $1 per bushel and are now $1.50 below the crush margins last year during this time.
Cold weather looks to return to the plains late this weekend, but winterkill concerns during that event are relatively low. The middle of next week shows more risk of a winterkill risk with temperatures expected to usher in low temperatures between -5 and -10 across 2/3 of the wheat belt. Of the area effected, only ¼ of the northern region is protected by snow cover.
Look back at the most popular Feed & Grain content from 2014
New Years is a time to both plan for the year ahead and contemplate the year that’s past. Like all years, 2014 had its ups and downs, but ultimately Feed & Grain had a great year and we hope that all of our readers did too. The following is a list of the top articles and blogs of the year; in case you missed something or just want to reflect. Have a great new year and we look forward to helping you manage the high and low points in the year to come.
The grains are seeing some selling in the overnight as we move into the last trade day of 2014.
In the overnight session corn slipped ¾ of a penny, soybeans fell 5 ¼ cents and wheat fell 3 cents. Today is First Notice day for soybeans, soymeal and soyoil. First day deliveries included 20 contracts of soybeans, no soymeal and 1,143 contracts of soyoil which was well above expectations.
Last night, temperatures fell to as low as -20 in parts of the northwest plains with 1/3 of the winter wheat belt subject to the freezing temperatures. With only 1-3 inches of snow cover, winterkill damage has certainly occurred. Temperatures should ease over the next few days but by late weekend more low temperatures will put the winter wheat crop at risk throughout Nebraska and northern Kansas.
South Korea is disinfecting farms around the country in an effort to try to contain the spread of Foot-and-mouth disease and bird flu. Foot-and-mouth disease had been confirmed in the center of the country but a recent case just 30 miles out of Seoul has the country on alert.
The grains turn lower in the overnight session with only two days left to trade in 2014
In the overnight session corn traded down 3 ¼ cents, March soybeans slipped ¼ cent and wheat fell 5 ¾ cents as it tests the 20 day moving average on the daily chart. This morning a reportable sale of 157,500 metric tons of corn was sold to Mexico for 14/15 delivery.
Wednesday the 31st is the first notice day for January Soybean, Soyoil and Soymeal contracts. To avoid delivery make sure all long positions have been liquidated by the close of trade today. Thursday January 1st, the market will be closed. Trading will resume on Friday at 8.30 AM CST. The USDA will release the weekly export sales report on Friday January 2nd.
Weather in the U.S. will be monitored closely by wheat traders as a cold blast from the north brings temperatures below zero in much of the plains region. Snow accumulation of 1-3 inches will help insulate some of the crop from the harsh temperatures, but 1/3 of the winter wheat crop will be at risk of winterkill tonight.
South American weather is continuing to provide adequate moisture for crop development. Argentina corn crop is 60% planted which is 5.5% behind last year’s pace due to excess moisture which has slowed progress. The two week weather outlook anticipates normal rainfall to continue benefiting crops in this region.
The grain markets are mixed this morning with light trade volume expected on this holiday shortened trade session.
In the overnight session corn traded ¼ cent higher, soybeans is down 4 cents and wheat in Chicago is down 3 ½ cents. The market closes early today at 12:00 CST today and will reopen at 8:30 CST on Friday morning.
A cold front is moving into the plains region on New Year’s Eve providing a threat of winterkill throughout the winter wheat producing states. New snowfall is expected between 1-2 inches in most of the area, but possible sub-zero degree temperatures may threaten some of the wheat crop. Confidence on this event is still relatively low.
Southern Brazil is likely to see heavy rains over the next 10 days which should then make its way north keeping crop concerns low throughout the country. Argentina is expected to get precipitation in the north and north eastern parts of the country, with another rain event expected next week which should provide relief to some of the dryer areas of the country. The driest areas currently include central and southwest Cordoba, western Buenos Aires and La Pampa which accounts for about 15-20% of corn and soybean production. The rains next week should provide relief to nearly half of the driest areas.
The head of Russia’s Grain Union said Russia may not be able to supply wheat to Egypt’s GASC in January due to the export curbs now existing in Russia. GASC’s Mamdouh Abdel Fattah responded by stating “Traders have to abide by their contracts.”
In the overnight session the grains were mixed with corn down 3/4 of a cent, soybeans down 2 3/4 of a cent and wheat up 4 cents going into this morning’s pause. Traders are eyeing two market moving reports that will be released next Tuesday the 31st which include the planting intentions...
In the overnight session corn fell 3/4 of a cent, soybeans dropped 2 3/4 cents and wheat increased 1 1/2 cents. The dollar pulled back one third of a percent and crude oil is trading up a dollar this morning. This morning there was a reportable sale of 280,000 metric tons of soybeans to...
The overnight was a quiet trade with corn unchanged, soybeans up 1/4 cent and wheat down 3 1/4 cents. The dollar is trading lower by nearly 3/4 of a percent and crude oil is up 34 cents. This morning there were a couple reportable sales that were announced by FAS for 108,863 metric tons of...