News From The Grain Floor

Hatred does not cease by hatred, but only by love; this is the eternal rule.

Buddha

 

No USDA announcements this morning .

 

Overnight closes

  • SK up 2 at 1486 ½  – SK made a new contract high overnight of 1496
  • CK down 4 ½ at 503
  • WK down 9 ¾ at 675 ½
  • KC WK down 9 ¼ at 744 ¼
  • MWK down 7 ¾ at 727 ½
  • SMK down .40 at 482.30
  • BOK up 58 at 4198
  • RRK down .50 at 1568.50

 

Overnight volume

  • SK 14,775
  • CK 12,878
  • WK 11,517
  • KC WK 465
  • MWK 87
  • SMK 3,703
  • BOK 17,610
  • RRK 20

 

Opening calls

  • Beans 1-3 higher
  • Corn 3-5 lower
  • Wheat 7-10 lower
  • KC wheat 7-10 lower
  • Minneapolis wheat 7-10 lower
  • Meal steady to 1 lower
  • Bean oil 50-60 higher
  • Rice steady lower

 

Crude and dollar lower. Gold, silver, and stock market higher.

 

Nikkei up 1.02%

Hang Seng up .33%

Shanghai Index up .56%

 

Weekly API energy inventory report from yesterday

  • Crude a draw of 5.8 MB expecting a build of 1.1 MB
  • Gas a build of 18,000 expecting a draw of 1.1 MB
  • Distillates a draw of 17,000 expecting a draw of 100,000

 

Argentina is on holiday.

 

Malaysian palm oil up 35

 

China grain closings – beans down 17, corn down 13, meal up 30, palm oil up 150, bean oil up 178

 

China sold 28.26% of wheat at today’s auction. They sold 246,319 tons and offered 871,525 tons

 

China’s Ministry of Commerce estimated March bean imports at 5.69 MMT  vs. 3.84 MMT a year ago

 

China’s Ministry of Commerce estimated April bean imports at 5.11 MMT vs. 3.98 MMT a year ago

 

South Africa bought 60,000 tons of Brazilian beans that were canceled by China.

 

Taiwan Flour Mills seeks 92,550 tons of milling wheat from the US for June shipment

 

Japan seeks 120,000 feed wheat and 200,000 feed barley via SBS tender for July shipment

 

Informa FNP estimated Brazil ‘13/14 bean crop at 86.75 MMT vs. previous estimate of 88.75 MMT

 

Informa FNP estimated Brazil’s ‘13/14 corn crop at 67.95 MMT

 

Agroconsult estimated Brazil’s ‘13/14 bean crop at 86.9 MMT vs. previous estimate of 89.2 MMT

 

Agroconsult estimated Brazil ‘13/14 corn crop at 71.2 MMT vs. previous estimate of 72.6 MMT

 

Agroconsult expects Brazil’s bean area to expand by 1.0 MH in ‘14/15

 

Cordonnier estimated ‘13/14 Brazilian bean crop at 86.5 MMT vs. previous estimate of 86.0 MMT

 

Cordonnier estimated Brazil’s ‘13/14 corn crop at 70.0 MMT vs. previous estimate of 68.5 MMT

 

Cordonnier estimated Argentine ‘13/14 bean crop at 54.0 MMT unchanged from previous estimate

 

Cordonnier estimated Argentine ‘13/14 corn crop at 23.5 MMT vs. previous estimate of 23.0 MMT

 

Cordonnier estimated Paraguay bean crop at 8.5 MMT vs. previous estimate of 8.0 MMT

 

Ukraine Ag Min said Ukraine exported 2.98 MMT of grain in March vs. 2.82 MMT in February

 

USDA attaché in Turkey estimated ‘14/15 sunseed production at 1.2 MMT vs. 1.4 MMT a year ago

 

USDA attaché in Turkey estimated ‘14/15 sunseed imports at 820,000 tons vs. 700,000 tons a year ago

 

USDA attaché in Turkey estimated ‘14/15 sunseed domestic use at 2.1 MMT vs. 2.2 MMT a year ago

 

May meal made a new contract high yesterday of 485.70

 

May bean oil 200 day moving average is 4214

 

Brazil Trade Ministry – Brazil’s March exports

  • Soybeans –  6.23 MMT vs. 2.79 MMT in February and vs. 3.54 MMT in March 2013
  • Meal – 727,000 tons vs. 506,600 tons in February and vs. 616,900 tons in March 2013
  • Bean oil – 117,000 tons vs. 37,545 tons in February and vs. 123,000 tons in March 2013
  • Corn – 577,700 tons vs. 1.06 MMT in February and vs. 1.61 MMT in March 2013

 

Open outcry option players from yesterday.

 

Corn:

RJO sold 3000 U 450-400 put spreads

FI bot 1000 short dated K 480 puts

FI sold 1000 Z 430 puts

FI sold 1000 Z 420 puts

FI bot 1000 week 1 490 puts

FI bot 500 week 1 510 puts/sold 1000 week 1 490 puts

ADM sold 500 N 500 puts

FCS bot 1000 U 490-540 call spreads

ICAP bot 1500 Z 540 calls/sold 1500 Z 400 puts

JPM sold 1000 N 520-560 call spreads

 

Beans:

Rosenthal sold 1000 K 1420 puts

ADM sold 1000 short dated K 1150 puts

ABN sold 1000 X 1100 puts

ABN bot 1000 K 1360 puts

Tenco bot 1000 X 1100-1000 put spreads

FI sold 800 K 1420 straddles

FI sold 500 X 1200 puts

FO sold 1000 M 1300 puts

JPM sold 1000 N 1460-1500 call spreads

GFI bot 500 X 1100-1000 put spreads

RJO bot 1000 X 1140-1060 put spreads

Tenco bot 400 N 1400 puts/bot 400 N 1440 calls

 

Wheat:

RJO sold 1000 N 620 puts

RJO bot 800 N 700 calls

Newedge bot 600 N 675 puts

ABN bot 500 N 640 puts

 

Oil:

RJO bot 400 M 42 calls

Newedge bot 400 N 39 puts/sold 400 N 45 calls

Newedge bot 300 K 41-40 put spreads

Rosenthal bot 300 K 42 calls

Macquarie sold 200 K 40 puts

ADM sold 200 K 41 calls

 

Meal:

JPM sold 200 K 450 puts/sold 200 K 490 calls

Newedge bot 400 M 440 calls/sold 400 N 470 calls

 

Open interest as of yesterday’s close

  • Total corn 1,363,434 open, up 21,485
  • Total beans 638,757 open, up 2,915
  • Total meal 318,316 open, up 2,786
  • Total bean oil 317,419 open, up 5,158
  • Total wheat 368,996 open, up 3,158
  • Total KC wheat 148,253 open, up 896

 

Upcoming reports/events

  • Weekly DOE #s come out today at 930 am CST. Expecting
    • Crude a build of 700,000
    • Gas a draw of 1.2 MB
    • Distillates a draw of 200,000
  • Weekly US ethanol plant production report comes out today at 930 am CST
  • Weekly US jobless claims come 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
  • China to auction 300,000 tons of rapeseed oil from reserves this week
  • US March unemployment report comes out on Friday at 730 am CST
  • Goldman Sachs roll begins April 7th. Goldman Sachs roll lasts for 5 days. They will be rolling their long May positions forward.
  • Weekly US crop progress reports start again Monday April 7th at 3 pm CST
  • USDA supply and demand and crop production report comes out on April 9th

 

Data sources: DowJones , Bloomberg, Reuters , DTN news, barchart.com and CME Group, NYSE