July 27, 2015 | Grain Hedge Insights | Cody Bills | Views: 90
July 27, 2015 | Grain Hedge Insights | Cody Bills | Views: 95

Monday Morning Sell-Off

Can the grains recover following a sharply lower open this morning?

In the overnight session the grains traded sharply lower with corn down 10 1/2 cents this morning, soybeans down 13 cents this morning and wheat down 5 1/2 cents this morning for the December contracts. The U.S. Dollar is trading over 1/2 a percent lower and crude oil is also lower, losing 80 cents this morning.

 

December corn gapped lower this morning opening at $3.99 after closing on Friday at $4.02. It will be important to pay close attention to the close of today’s session since there are many levels of support that cross at $3.98 including the 62 percent retracement, the 100 day moving average and a trend. A rebound this morning with a close above $3.98 could signal a short term bottom in prices.

 

The crop progress report will be released at 3 PM CST tonight and will be followed closely by traders. Expectations are for corn and soybeans to be mostly unchanged to 1-2 points higher. Last week corn was rated around 69 percent rated good-to-excellent and soybeans around 62 percent rated good-to-excellent.

 

On Friday the Canadian Wheat board tour forecast a significant year over year decline in yields for Canadian crops. The tours forecast pegs Canada’s spring wheat yield at 38.9 bushels per acre compared to 45.7 bushels per acre last year. Durum yield is forecast to be around 27.8 bushels per acre vs 40.9 bushels per acre last year and Canola yield is pegged at 29.3 bushels per acre compared to 34.4 bushels per acre last year.

 

This morning Jordan’s state grain buyer issued a couple tenders this morning for 70,000 metric tons of corn and another tender to purchase 100,000 metric tons of wheat. 

July 24, 2015 | Grain Hedge Insights | Cody Bills | Views: 177
July 24, 2015 | Grain Hedge Insights | Cody Bills | Views: 129

Grains Continue Lower on Friday Morning

The grains continued lower on Friday morning as the weather outlook continues to favor good growing conditions.

In the overnight session the grains traded lower with corn down 5 cents, soybeans down 7 cents and wheat down 5 cents. The U.S. dollar is higher by nearly ½ a percent and crude oil is 33 cents higher this morning. For Soybeans, the 50 percent retracement of the sharp rally in November soybeans sits at $9.70 ½ which is just 4 cents lower than where soybeans is trading this morning. The 50 percent retracement of the Corn rally is at $4.08 ¼ which was touched during yesterday's trade. This morning Corn trades at around $4.09 ½ cents.

 

This morning a few reportable sales were announced including a 220,000 metric ton sale of Soybeans to China for new crop delivery. This is the fourth consecutive day of reportable new crop soybean sales. Exporters also sold 231,000 metric tons of corn to Mexico, most of which was for 15/16 delivery and 104,350 metric tons of wheat to Taiwan for 15/16 delivery. In this morning's string of export sales another 116,000 metric tons of Sorghum was sold to unknown destinations split between old crop and new crop delivery.

 

Weather continues to look positive for crop development this morning with some showers passing through North Dakota, South Dakota and Minnesota this morning and providing moisture to Nebraska and Iowa on Saturday. The 6-10 day outlook looks to bring more precipitation to the grain belt after a week of drier conditions. Early next week temperatures could reach mid 90's in the southwest but should be mostly high 80's throughout the majority of the grain belt.

 

A recent crop forecast from Bueno's Aires projects a slight decline in planted wheat acreage throughout Argentina. The report lowered its planted area estimate from 5 million hectares to 4.8 million hectares for the 15/16 growing season. The ministry also lowered its 14/15 soybean production estimates from 61 million metric tons to 60.8 million metric tons. The revisions were a result of dryness throughout parts of the country.

July 23, 2015 | Grain Hedge Insights | Cody Bills | Views: 213
July 23, 2015 | Grain Hedge Insights | Cody Bills | Views: 133

Can Export Sales Lift Wheat?

Wheat export sales were stronger than expected this morning giving wheat a reason to end its 8 day price decline.

In the overnight session the grains moved slightly higher with wheat showing the largest rebound, up 5 ¾ cents. Corn is trading unchanged this morning and soybeans is up ¾ of a cent. The U.S. dollar is moving nearly 1/3 of a percent lower and crude oil is up 12 cents per barrel.

 

Export sales were mostly on the low side of analyst expectations except for wheat which booked 502,800 metric tons this week. Wheat sales were up 73 percent on the week and beat analyst expectations which ranged from 200,000 to 400,000 metric tons. Old crop corn sales recorded 223,400 metric tons which was down 33 percent from the previous week missing analyst expectations which ranged from 250,000 to 450,000 metric tons. Old crop soybeans recorded positive sales this week, adding 80,800 metric tons to the books. Analyst were expecting between 0-150,000 metric tons booked this week.

 

New crop corn and soybean sales were on the low side of analyst expectations with corn only booking 311,400 metric tons and soybeans booking 241,800 metric tons. As of last week new crop corn and soybeans had booked just over half the sales we typically see during this time of the year. The strong dollar and sharp rally in the grains recently has slowed new crop export demand considerably.

 

Ethanol production fell 11,000 barrels per day this week to 973,000 BPD. Despite the weekly decline ethanol production continues to 4.6 percent ahead of last year’s pace. This week’s ethanol production was 14,000 barrels per day ahead of last year during the same week, and 101,000 barrels per day ahead of the four year average. Ethanol stocks also declined this week, falling 181,000 barrels to 19.56 million barrels.  

July 22, 2015 | Grain Hedge Insights | Cody Bills | Views: 162

Lagging New Crop Sales

Tune in as Cody breaks down the charts for corn, soybeans, and wheat. He also looks to see how lagging new crop sales are effecting the grains.

July 22, 2015 | Grain Hedge Insights | Cody Bills | Views: 136

Will Weather Turn Positive for Crops?

Will the weather over the next 10 days help overall crop development?

In the overnight session the grains traded lower again with corn down 5 ¼ cents, soybeans down 3 cents and wheat down 8 cents. The U.S. dollar is up 1/5th of a percent and crude oil 66 cents lower. Corn is trading just above the 50 percent retracement level at $4.09 from the rally that started June 16th and recently peaked at 4.54 ¼ cents on July 14th. November soybeans is trading around the $10 level with a mild support level around $9.92.

 

The grains are moving lower this morning with the forecast showing a positive outlook for crop development over the next 10 days. The eastern Midwest which has been getting hit with excessive moisture in the early part of the growing season is expected to receive only limited showers, while the outlook in Iowa and Nebraska is for the weather to turn wetter for the next 10 days. Heat events are expected to be limited with only a few mild events expected over the weekend and early next week. Canada is also expected to receive beneficial rains for their wheat and canola crop.

 

This morning there was some export activity with NASS reporting 120,000 metric tons of U.S soybeans to be sold to china for new crop delivery. A tender was also issued this morning by South Korea’s corn processing industry association for 55,000 metric tons of corn from either the U.S, Brazil or Argentina. The corn is to be delivered in November and the tender closes on Wednesday. 

July 21, 2015 | Grain Hedge Insights | Cody Bills | Views: 168
July 21, 2015 | Grain Hedge Insights | Cody Bills | Views: 134

Crop Conditions Hold Steady

With the crop progress report out of the way, can grain prices hold their ground?

In the overnight session the grains traded mixed with corn down 2 cents, soybeans up 1 ¾ cents and wheat down 4 ¼ cents. The U.S. Dollar is lower by 1/5th of a percent and crude oil is up 14 cents this morning. This morning the USDA reported 110,000 metric ton sale of U.S. soybeans to unknown destinations.  

 

The crop conditions report was released after the market closed on Monday and showed that corn and soybeans rated good-to-excellent was left unchanged at 69 percent and 62 percent respectively. Corn did show an increase in the excellent column by 2 percent which was offset by a 2 percent decline in the good column.  Analysts were expecting to see corn ratings unchanged and soybeans conditions to decline from last week. In the state crop progress reports both Indiana and Ohio described some of the recently harvested wheat crop as being of very low quality with low test weights, high vomitoxin levels and high moisture content.

 

Export inspections showed that corn, soybeans and wheat all beat analyst expectations. In the report released on Monday corn showed 1,161,000 metric tons were inspected for export, above expectations which ranged from only 600,000-900,000 metric tons. Soybeans reported 306,000 metric tons compared to expectations of 110,000-215,000 metric tons and wheat reported 489,000 metric tons inspected for export. All three crops showed significant improvement over last week’s inspection numbers.

 

Egypt’s GASC was offered wheat from Russia, France, Ukraine and Romania in a tender for 55,000-60,000 metric tons of wheat that was issued yesterday. No wheat was offered from the U.S.  and Russian wheat was the most competitive at $193.75 a metric ton.  

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Monday Morning Sell-Off

July 27, 2015 | Grain Hedge Insights | Cody Bills

In the overnight session the grains traded sharply lower with corn down 10 1/2 cents this morning, soybeans down 13 cents this morning and wheat down 5 1/2 cents this morning for the December contracts. The U.S. Dollar is trading over 1/2 a percent lower and crude oil is also lower, losing...

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July 23, 2015 | Grain Hedge Insights | Cody Bills

In the overnight session the grains moved slightly higher with wheat showing the largest rebound, up 5 ¾ cents. Corn is trading unchanged this morning and soybeans is up ¾ of a cent. The U.S. dollar is moving nearly 1/3 of a percent lower and crude oil is up 12 cents per barrel. Export...

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