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NOPA Nov Crush will be announced on Thursday

Grains were Lower Overnight

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Grains were lower overnight as equities and crude oil also traded into negative territory going into the morning break.

US ethanol margins have firmed of late with spot ethanol seeing a big move higher on Monday. With a strong spot margin for ethanol production, a lot of plants should expand expand capacity in the short-run, but it may be short-lived as forward margins are much weaker.

China cash meal has been firm for a while with big feeding margins on hogs and what is seen as a slight delay in bean imports. Chinese imports of soybeans for the last quarter of 2016 are expected to be slightly bigger than last year. The Chinese government has closed 6 to 8 bean crushing plants in Guangdong to help control pollution. They have been given a week to develop plans to control emissions. The plants combined crush about 775 TMT a month.

NOPA Nov crush will be announced Thursday with expectations of 162 MB vs 164.6 in Oct and 156.1 last year. This is a slight increase in daily crush rate over October but could be the largest daily crush for the year.

Fed policymakers will announce their interest rate decision today, which is expected to show a quarter point rise. The market will be looking for clues in the Fed statement about what might happen to rates going forward in 2017.

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