News From The Grain Floor

Good morning

 

It is during our darkest moments that we must focus to see the light.
– Aristotle Onassis

January options expire today at 115 pm CST. See below for open interest in Jan options.

 

Overnight closes

  • SH up 5 ¾ at 1311
  • CH up 1 ¾ at 428
  • WH up a ¼ at 606 ¼
  • KC WH down ¾ at 643 ¾
  • MWH down 1 at 637 ¼
  • SMH up 1.70 at 426.20
  • BOH up 14 at 3932
  • RRH down 4 at 1530.50

 

Overnight volume

  • SH 9,521
  • CH 6,843
  • WH 2,935
  • KC WH 425
  • MWH 81
  • SMH 4,035
  • BOH 8,907
  • RRH 33

 

Opening calls

  • Beans 5-7 higher
  • Corn 1-3 higher
  • Wheat steady mixed
  • KC wheat steady lower
  • Minneapolis wheat steady lower
  • Meal 1.00-2.00 higher
  • Bean oil 10-20 higher
  • Rice 3-5 lower

 

Crude oil, stock market, gold, and silver higher. Dollar lower.

 

Nikkei down .3%

Hang Seng up .2%

Shanghai Index up 1%

 

China grain closings – beans down 5, corn down 1, meal down 7, palm oil up 62, and bean oil up 14.

 

Palm oil down 2

 

Xinhua News Agency said China’s AQSIQ confirmed China did cancel 2 cargoes of DDGS from the US after testing positive for unapproved MIR 162 GMO.

 

Market expecting China to reject more cargoes of US DDGS cargoes.

 

South Korea NOFI canceled tender for 70K optional origin corn for May shipment due to traders expecting to get rejected US corn at a discount.

 

Iraq seeks 15,000 sunflower oil any origin except for China .

 

Jordan retenders for 100,000 optional origin wheat

 

Morocco seeks 180,000 tons of local wheat

 

Qatar seeks 84,000 optional origin feed barley

 

Hot and dry in Argentina and Southern Brazil over the next couple days , favorable weather in forecast for next week – cooler temps and rains .

 

More heavy rains and flooding in forecast for Malaysia palm oil areas.

 

Weekly US export sales report

  • Wheat ‘13/14 596,900 ‘14/15 60,000 (expecting 350-550K)
  • Corn ‘13/14 1.48 MMT ‘14/15 509,200 (expecting 550-750K)
  • Beans ‘13/14 720,200 ‘14/15 68,100 (expecting 500-700K)
  • Meal ‘13/14 83,300 ‘14/15 1,100 (expecting 50-150K)
  • Bean oil ‘13/14 83,900 (expecting 0-15K)

 

Export highlights

  • Wheat – Net sales of 596,900 MT for delivery during the 2013/2014 marketing year were down 9 percent from the previous week, but up 31 percent from the prior 4-week average. Increases reported for Brazil (140,000 MT), Indonesia (94,400 MT, including 65,000 MT switched from unknown destinations and 30,000 MT from South Korea and decreases of 600 MT), Nigeria (81,900 MT, including 7,000 MT switched from unknown destinations and decreases of 5,000 MT), Egypt (55,000 MT), and China (55,000 MT), were partially offset by decreases for South Korea (25,500 MT), unknown destinations (21,500 MT), Italy (2,100 MT), and Belize (2,000 MT). Net sales of 60,000 MT for 2014/2015 were reported for Nigeria (40,000 MT) and unknown destinations (20,000 MT). Exports of 465,300 MT were up 24 percent from the previous week and 14 percent from the prior 4-week average. The primary destinations were Nigeria (106,500 MT), the Philippines (96,600 MT), Indonesia (94,900 MT), Thailand (53,900 MT), and South Korea (26,500 MT).
  • Corn – Net sales of 1,478,500 MT for 2013/2014 were up 79 percent from the previous week and up noticeably from the prior 4-week average. Increases were reported for Japan (311,500 MT, including 41,100 MT switched from unknown destinations and decreases of 15,200 MT), South Korea (310,300 MT), Mexico (247,000 MT), Egypt (118,700 MT), and Peru (90,200 MT, including 25,000 MT switched from unknown destinations). Decreases were reported for unknown destinations (3,900 MT) and Honduras (900 MT). Net sales of 509,200 MT for 2014/2015 were reported for Japan (463,000 MT) and unknown destinations (46,300 MT). Exports of 1,348,200 MT were up 94 percent from the previous week and 70 percent from the prior 4-week average. The primary destinations were Mexico (289,800 MT), Japan (235,400 MT), China (204,600 MT), South Korea (122,200 MT), and Egypt (118,700 MT).
  • Beans – Net sales of 720,200 MT for 2013/2014 were up 74 percent from the previous week, but down 23 percent from the prior 4-week average. Increases were reported for China (517,700 MT, including 254,300 MT switched from unknown destinations and decreases of 18,300 MT), Mexico (105,500 MT), Turkey (51,200 MT), Japan (43,900 MT, including 22,700 MT switched from unknown destinations and decreases of 3,300 MT), and the Netherlands (23,100 MT, including 21,000 MT switched from unknown destinations). Decreases were reported for unknown destinations (38,500 MT), Italy (24,900 MT), and Israel (22,000 MT). Net sales of 68,100 MT for 2014/2015 were reported for unknown destinations (60,000 MT) and Japan (8,100 MT). Exports of 1,445,600 MT were down 8 percent from the previous week and 17 percent from the prior 4-week average. The primary destinations were China (1,167,500 MT), Mexico (47,800 MT), Tunisia (33,000 MT), Japan (32,400 MT), and Taiwan (31,700 MT).
  • Meal – Net sales of 83,300 MT for 2013/2014 resulted as increases for Thailand (45,000 MT switched from unknown destinations), the Philippines (40,100 MT), Italy (38,300 MT, including 40,000 MT switched from unknown destinations and decreases of 1,700 MT), Japan (35,100 MT, including 3,000 MT switched from unknown destinations), and Ecuador (32,300 MT, including 30,000 MT switched from unknown destinations). Decreases were reported for unknown destinations (189,600 MT), France (15,900 MT), and Israel (5,800 MT). Net sales of 1,100 MT for 2014/2015 were reported for Nicaragua. Exports of 292,900 MT were up 11 percent from the previous week, but down 6 percent from the prior 4-week average. The primary destinations were Mexico (47,000 MT), Italy (38,300 MT), Ecuador (32,300 MT), Colombia (31,600 MT), and Poland (29,000 MT).
  • Bean oil – Net sales of 83,900 MT for 2013/2014 were up noticeably from the previous week and from the prior 4-week average. Increases were reported for Panama (42,000 MT), the Dominican Republic (15,400 MT), Peru (14,500 MT), and Mexico (8,200 MT). Exports of 25,400 MT were up 81 percent from the previous week and 26 percent from the prior 4-week average. The primary destinations were Colombia (10,200 MT), Mexico (4,800 MT), Venezuela (4,000 MT), and Jamaica (3,500 MT).

 

Open interest in January options as of yesterday’s close

Corn March closed at 428 at 745 this morning

  • 400 calls 263 open – puts 5,729 open
  • 410 calls 108 open – puts 10,225 open
  • 420 calls 1,243 open – puts 11,473 open
  • 425 calls 2,310 open – puts 14,607 open
  • 430 calls 4,699 open – puts 22,103 open
  • 435 calls 2,484 open – puts 4,333 open
  • 440 calls 8,004 open – puts 5,030 open
  • 450 calls 8,005 open – puts 1,887 open

Beans – Jan closed at 1326 at 745 this morning

  • 1300 calls 5,100 open – puts 13,155 open
  • 1310 calls 1,799 open – puts 2,728 open
  • 1320 calls 3,127 open – puts 2,962 open
  • 1330 calls 2,068 open – puts 1,622 open
  • 1340 calls 3,483 open – puts 2,074 open
  • 1350 calls 3,149 open – puts 641 open

Meal – Jan closed at 443.30 at 745 this morning

  • 430 calls 874 open – puts 1,993 open
  • 435 calls 268 open – puts 829 open
  • 440 calls 1,498 open – puts 872 open
  • 445 calls 274 open – puts 52 open
  • 450 calls 1,371 open – puts 46 open

Bean oil – Jan closed at 3897 this morning

  • 3850 calls 6 open – puts 486 open
  • 39 calls 266 open – puts 592 open
  • 39.50 calls 718 open – puts 2,746 open
  • 40 calls 772 open – puts 906 open

Wheat – March closed at 606 ¼ this morning

  • 600 calls 71 open – puts 601 open
  • 605 calls 57 open – puts 341 open
  • 610 calls 872 open – puts 582 open
  • 615 calls 357 open – puts 2,309 open
  • 620 calls 2,443 open – puts 891 open

 

Upcoming reports and events

  • Weekly EIA Nat Gas storage report comes out today at 930 am CST expecting – 177 billion
  • Weekly DOE #s come out today at 10 am CST expecting
    • Crude a draw of 2.2 MB
    • Gas a build of 1.0 MB
    • Distillates a draw of 300,000
  • Weekly US ethanol plant production report comes out today at 10 am CST
  • Weekly COT report comes out today at 230 pm CST
  • Position day for Jan futures is Monday . Delivery expectations for Monday night are
    • Bean oil 1,000 – 2,000 . As of this morning there were 9,921 receipts registered
    • Meal 0 . As of this morning there was only 1 receipt registered
    • Beans 0. As of this morning  there were 0 receipts registered
  • Weekly US export inspections report comes out on Monday at 10 am CST
  • First notice day for Jan futures Tuesday
  • Malaysian palm oil markets closed on Dec 31st
  • See attachment for New Year holiday schedule