News From The Grain Floor

Good morning

 

To think too long about doing a thing often becomes its undoing.

– Eva Young

 

Overnight closes

  • SH up 5 ½ at 1285
  • CH up 2 at 428 ¼
  • WH up 10 ½ at 571 ¾
  • KC WH up 12 ¼ at 637
  • MWH up 9 ¾ at 626 1/52
  • SMH up 1.70 at 421.10
  • BOH up 19 at 3803
  • RRH down 3.50 at 1547

 

Overnight volume

  • SH 10,516
  • CH 12,198
  • WH 11,253
  • KC WH 1,094
  • MWH 337
  • SMH 4,738
  • BOH 8,997
  • RRH 26

 

Opening calls

  • Beans 4-6 higher
  • Corn 1-3 higher
  • Wheat 9-11 higher
  • KC wheat 10-15 higher
  • Minneapolis wheat 7-10 higher
  • Meal 1.00-2.00 higher
  • Bean oil 15-25 higher
  • Rice 3-5 lower

 

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

 

Nikkei down .79%

Hang Seng down 1.5%

Shanghai Index down .5%

 

Weekly API energy inventory report from yesterday

  • Crude a build of 4.9 MB expecting a build of 600,000
  • Gas a build of 1.1 MB expecting a build of 2.1 MB
  • Distillates a draw of 2.3 MB expecting a draw of 900,000

 

Flash mfg PMIs

  • China HSBC flash at 49.6 (6 month low)  vs. Dec final of 50.5
  • France flash at 48.8 expecting 47.5 and vs. Dec final of 47.0
  • Germany 56.3 expecting 54.6 vs. Dec final of 54.3 (highest since May 2011)
  • Eurozone at 53.9 expecting 53.0 vs. Dec final of 52.7 (highest since May 20141)

 

Weekly US jobless claims report came out this morning at +1K to 326K expecting 330K

 

Reports of 40,000 tons of Argentine meal being shipped to southeast US .

 

Conflicting reports about China bean imports. Some analysts are saying China canceling US bean cargoes, others saying they are switching US beans to Brazilian beans, and other analysts are saying China is buying US beans for March shipment due to concerns of Brazilian port congestion

 

TALK from yesterday China bought 3-5 US bean cargoes for ‘14/15 shipment

 

TALK China rejecting Brazilian bean oil for not meeting China’s standards

 

Hearing China bought 150,000 Australian wheat

 

Saudi Arabia seeking 660,000 tons of optional origin hard and soft wheat for April / June shipment

 

Iraq bought 350,000 Australian , Canada, and US wheat for April –June shipment

 

Japan bought 99,052 US wheat for Feb-March shipment

 

Ethiopia seeks 70K optional origin milling wheat

 

Taiwan MFIG canceled tender for 60K US corn for April shipment

 

Taiwan bought 73,400 tons of US milling wheat

 

189 KC wheat receipts were canceled yesterday afternoon out of Cargill

 

Upcoming reports and events

  • Weekly  EIA Nat Gas storage report comes out today at 930 am CST expecting – 110B
  • Weekly DOE energy inventory report comes out today at 10 am CST . Expecting
    • Crude a build of 1.2 MB
    • Gas a build of 1.7 MB
    • Distillates a draw of 800,000
  • Weekly US ethanol plant production report comes out today at 10 am CST
  • Weekly US export sales report comes out tomorrow at 730 am CST
  • Feb options expire Friday at 115 pm CST
  • Weekly COT report comes out tomorrow at 230 pm CST
  • On Saturday surveyor Intertek Agri Services will come out with their Malaysian Jan 1-25th palm oil export estimates
  • On Monday surveyor SGS will come out with their Malaysian Jan 1-25th palm oil export estimates
  • China markets will be closed Jan 31st – Feb 3rd for Lunar New Year holiday . Markets resume Feb 4th