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May 25, 2016 | Grain Hedge Insights | Kevin McNew | Views: 426
May 25, 2016 | Grain Hedge Insights | Kevin McNew | Views: 205

Grains Start the Day in Positive Territory

Crude Oil added to yesterday's gains

Grains were in positive territory to start the day with soybeans leading on a 10-cent advance. In outside markets, crude oil and equity futures continued to add to yesterday’s gains.

 

Soybeans were up today buoyed by strength of late in soymeal. Slow farmer selling in Argentina is helping support soymeal prices as international buyers usually find ample supplies from South America this time of year. Also supporting soymeal was word that ADM’s Frankfurt, IN soybean plant was idling for maintenance.

 

In weather, rains is expected to be focused on the center of the US with rains across the W. Midwest will keeping planting slow. The western Midwest finally gets a needed break beginning the middle of next week which promises a longer window to catch up soy seeding and this will extend into the eastern Midwest as well.

 

In overnight export deals, a South Korea feed dealer bought 60,000 MT of feed wheat optional origin while another group in South Korea issued a tender for 70,000 MT of corn.

 

API crude stocks data on Tuesday was supportive as weekly inventories shrunk by 5.1 million barrels versus trade estimates of a 3.3 million barrel decline. That marks the 2nd week in a row of declining API crude stocks, and is the first time since early January that crude stocks reported by API fell for two weeks in a row. Official government data from EIA will be released at 9:30 am CDT today with the data expected to show a 2.4 million barrel drop from last week.

 

The risk of trading futures, hedging, and speculating can be substantial. Grain Hedge is a Branch of Foremost Trading LLC (NFA ID: 0307930)

May 24, 2016 | Grain Hedge Insights | Kevin McNew | Views: 257
May 24, 2016 | Grain Hedge Insights | Kevin McNew | Views: 229

Grains Moved Lower Overnight

US Dollar was stronger...

Grains moved lower yet again overnight with soybeans continuing their sell-off reaching their lowest mark since the May 10 crop report. In outside markets, the US dollar was stronger as was equity futures and crude oil.

 

After the close on Monday, USDA released their weekly crop progress report showing a big jump in soybean plantings from 36% last week to 56% this week. Corn planting looked to be mostly wrapped up with 86% of the crop planted. And winter wheat conditions held steady at 62% good-to-excellent versus last week. Spring wheat is also faring well at 76% good-to-excellent versus last year of 69%. Indiana and Ohio still lagging on planting.  For corn, Indiana is 62 percent planted (vs 5-year avg of 77 pct) and Ohio reaches 51 pct (vs 5-year avg of 66 pct).

 

In export news on Monday, weekly inspections from USDA showed sub-par movement for soybeans while corn and wheat were in-line with expectations. With only a few weeks left in the wheat marketing year it seems likely final year exports will come up 20 to 30 MB shy of USDA’s forecast. Corn is also lagging but the pace has been brisk of late and with 3 months left in the marketing year will likely meet USDA’s benchmark.

 

Overnight, Taiwan's maize industry procurement association MFIG has purchased 65,000 MT of corn to be sourced from the United States in an international tender which closed on Tuesday, European traders said. The tender had sought corn from either the United States, Brazil, Argentina or South Africa. This morning USDA announced a 140,000 MT of soybeans for new-crop to unknown destinations. That makes two days in a row of new-crop bean deals.

 

The risk of trading futures, hedging, and speculating can be substantial. Grain Hedge is a Branch of Foremost Trading LLC (NFA ID: 0307930)

May 23, 2016 | Grain Hedge Insights | Kevin McNew | Views: 245
May 23, 2016 | Grain Hedge Insights | Kevin McNew | Views: 219

Grains Start the Week in Negative Territory

Crude Falls Yet Again

Grains started the week in negative territory with soybeans facing the biggest brunt of the selling pressure. In outside markets, crude oil fell for a 4th consecutive session and equity futures were steady to weaker in early trade.

 

Soybeans got pressured overnight on improved crop weather in the U.S. Midwest and a "risk-off" mood in the broader commodity sector. Ahead of USDA's weekly crop progress report, early trade estimates were for the government to show U.S. soybean planting at 58 to 60 percent complete.

 

Overnight news saw some export tender activity. Taiwan’s MFIG purchasing group issued a tender to buy 40,000 to 65,000 MT of corn, while a group of Israeli buyers issued a tender to purchase 108,000 MT of corn. This morning USDA announced two export deals. Exporters sold 140,000 MT of new-crop soybeans to unknown destinations and a 20,000 MT deal for old-crop soybean oil.

 

In outside markets, the US dollar continued to climb higher this morning as the market starts to expect the US Fed to raise interest rates. The US dollar is at 2-month highs and posing problems for commodity prices in general. Crude oil in particular is off from its highs by $2 a barrel.

 

The risk of trading futures, hedging, and speculating can be substantial. Grain Hedge is a Branch of Foremost Trading LLC (NFA ID: 0307930)

May 20, 2016 | Grain Hedge Insights | Kevin McNew | Views: 217

Weekly Cash Comments

Weekly Cash Commentary for week ending 05/20/2016

Corn basis was unchanged on the week while soybean basis firmed nearly two cents a bushel.

 

In corn, active farmer selling in the Western Cornbelt this week brought some pressure to basis levels as did weakness out of the Gulf. Ethanol plants as a group were mostly unchanged, but there was some weakness apparent in the Western Cornbelt where plants seemed to be 3 to 5 cents lower on the week. River bids were also weaker, giving up 2 cents a bushel on average.

 

For soybeans, farmer sales were limited after soybean futures backed off of recent highs. River terminals were up 3 cents a bushel on the week, while soybean crushing plants were up 2 cents on average.

 

The risk of trading futures, hedging, and speculating can be substantial. Grain Hedge is a Branch of Foremost Trading LLC (NFA ID: 0307930)

May 20, 2016 | Grain Hedge Insights | Kevin McNew | Views: 178

Grains Find Strength Overnight

Equity Futures were also Higher

Grains found strength overnight with soybeans leading the complex higher while corn and wheat followed with more subdued gains. In outside markets, equity futures were higher while crude oil and the US dollar were mostly steady.

 

Producers in isolated parts of Brazil's main grain state of Mato Grosso started harvesting the winter corn crop earlier than expected to take advantage of near record prices, as the drought that has curtailed yields also accelerated the crop's maturation. Reports of winter corn harvesting are still isolated in the center-west state of Mato Grosso, according to agronomists on the Rally da Safra crop tour.

 

French farmers had sown 91% of their corn crop, up from 78% but lagging the 96% progress seen a year ago, farm office FranceAgriMer said on Friday.  Corn planting has been slowed by wet, cool weather during much of spring so far and FranceAgriMer said the average sowing date was 15 days later than the average of the past five years.

 

South Korea's KOCOPIA rejected all offers and made no purchase in a tender for 55,000 MT of corn which closed on Friday, European traders said. Prices were regarded as too high, they said. Lowest offer was $198.60 a tonne c&f including surcharge for additional port unloading, they said.

 

The risk of trading futures, hedging, and speculating can be substantial. Grain Hedge is a Branch of Foremost Trading LLC (NFA ID: 0307930)

May 19, 2016 | Grain Hedge Insights | Kevin McNew | Views: 253
May 19, 2016 | Grain Hedge Insights | Kevin McNew | Views: 261

US Dollar Continues it’s Rally Overnight

Grains were weaker overnight

Grains were weaker overnight as strength in the US dollar continued to weigh on all commodity markets especially crude oil which was off over a $1 a barrel.

 

The US dollar continued its rally overnight and into the morning session, gaining 0.4% overnight and reaching its highest mark since March 23. The Federal Reserve will likely raise interest rates in June if economic data points to stronger second-quarter growth as well as firming inflation and employment, according to minutes from the U.S. central bank's April policy meeting released on Wednesday. That view, expressed by most Fed policymakers at the last policy meeting, suggests the central bank is much closer to lifting rates again than Wall Street expects.

 

This morning, USDA’s export sales report had supportive corn numbers with a good showing on both old- and new-crop deliveries, which beat expectations. Wheat and soybeans were less impressive though still within expectations.

 

WEEKLY EXPORT SALES

                       OC-Act        OC-Exp        NC-Act      NC-Exp

Corn                  1,473       900-1,300         541       100-300

Soybeans              556          300-500         158         50-250

Wheat                  175             0-250         573        200-400

 

The risk of trading futures, hedging, and speculating can be substantial. Grain Hedge is a Branch of Foremost Trading LLC (NFA ID: 0307930)

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