News From The Grain Floor

Good morning

 

Be courteous to all, but intimate with few, and let those few be well tried before you give them your confidence.

George Washington

 

USDA announced 272,000 US old crop beans canceled by China

 

USDA announced 240,000 US new crop beans bought by China

 

Overnight closes

  • SH down 5 ¼ at 1329 ½
  • CH down 1 ¾ at 439 ¾
  • WH down 1 ¼ at 589
  • KC WH down ¾ at 664 ¾
  • MWH down ¾ at 660 ½
  • SMH down 2.10 at 447.10
  • BOH up 6 at 3891
  • RRH down 2.50 at 1550.50

 

Overnight volume

  • SH 13,992
  • CH 17,168
  • WH 7,831
  • KC WH 822
  • MWH 185
  • SMH 6,296
  • BOH 8,176
  • RRH 48

 

Opening calls

  • Beans 5-7 lower
  • Corn 1-3 lower
  • Wheat 1-3 lower
  • KC wheat steady to 1 lower
  • Minneapolis wheat steady to 1 lower
  • Meal 1.50-2.50 lower
  • Bean oil  steady to 10 higher
  • Rice 2-4 lower

 

Stock market lower. Dollar, gold, silver, and crude higher

 

Nikkei up .555%

Hang Seng up 1.470%

Shanghai index up .3%

 

Weekly API energy inventory report from yesterday

  • Crude a build of 2.1 MB expecting a build of 2.7 MB
  • Gas a draw of 479,000 expecting a draw of 100,000
  • Distillates a draw of 1.5 MB expecting a draw of 2.3 MB

 

Palm oil up 25 (6 week high)

 

China grain closings beans up 7, corn down 3, meal down 35, palm oil up 14, bean oil up 2

 

TALK China inspections for unapproved GMO beans are slowing bean movement to crushing plants

 

Crushing margins in China are negative

 

Hearing Ecuador bought 1 US meal cargo yesterday

 

Hearing China bought 1 US new crop bean cargo

 

Hearing China bought Brazilian beans for May- July shipment

 

JCI said China’s poultry industry lost over 100 billion yuan in 2013 due to bird flu outbreak

 

Dry weather in Argentina by the end of week

 

Rains in Brazil by the end of the week.

 

March meal made a new contract high overnight of 452.90

 

Yesterday Mizuho bought 3,500 Dec meal 300 puts . Open interest indicates this was a new position

 

Today is the fourth day of the Goldman Sachs roll. The roll ends tomorrow. Yesterday on the close

  • 9,300 March May bean spreads traded on the screen at 14 ¼
  • 200 March May bean spreads traded at 14 ¼ in the pit
  • 4,300 March May bean oil spreads traded on the screen at 29
  • 1,300 March May bean oil spreads traded on the screen at 29
  • 5,900 March May soymeal spreads traded on the screen at 18.00
  • 8,050 March May wheat spreads traded on the screen at 1 ¼
  • 150 March May wheat spreads traded on in the pit at 1 ¼
  • 14,500 March May corn spreads traded on the screen at 5 ½ -5 ¾
  • 2,600 March May corn spreads traded in the pit at 5 ½ -5 ¾ (mostly at 5 ¾ )

 

Open interest as of yesterday’s close

  • Total corn 1,347,197 open, up 2,208
  • Total beans 682,698 open, up 6,861
  • Total meal 299,697 open, up 1,595
  • Total bean oil 347,407 open, down 3,590
  • Total wheat 438,293 open, down 88
  • Total KC wheat 147,042 open, down 742

 

Upcoming reports and events

  • Weekly DOE #s come out today at 930 am CST. Expecting
    • Crude build of 2.5 M
    • Gas draw of 200,000
    • Distillates a draw of 2.1 M
  • Weekly US ethanol plant production report comes out today at 930 am CST
  • Weekly US jobless claims report comes out tomorrow at 730 am CST
  • Weekly US export sales report comes out tomorrow at 730 am CST
  • Weekly EIA Nat Gas storage report comes out tomorrow at 930 am CST
  • USDA to release 10 year baseline projections tomorrow
  • China’s PPI and CPI comes out on Thursday night/ Friday morning
  • German and Eurozone flash GDP comes out on Friday
  • Intertek will estimate Malaysia’s Feb 1-15th palm oil exports on Saturday
  • SGS will estimate Malaysia’s Feb 1-15th palm oil exports on Monday
  • Monday Feb 17th is a US holiday . Markets will be closed
  • Tuesday Feb 18th January NOPA crush report will come out at 11 am CST
  • May beans, corn, wheat, KC wheat, meal, oil, and rice will go top step on Feb 19th. CME started new roll date procedures CME will roll months on the 12th business day of the month
  • USDA Annual Outlook Meeting is Feb 20th and 21st
  • March options expire on 2/21/14