News From The Grain Floor 8/06/14

Good morning.

 

Everybody gets so much information all day long that they lose their common sense.

–          Gertrude Stein

 

USDA announced 160,000 tons of US corn sold to Colombia for ’14/15 shipment

 

Overnight closes

  • SX down 4 at 1061 6/4
  • CZ unchanged at 367 ¼
  • WU up 5 ¾ at 558 ¼
  • KC WU up 5 ½ at 648 ¼
  • MWU up 3 ¼ at 633
  • SMZ down 1.10 at 342.50
  • BOZ down 11 at 3576
  • RRU up 1.5 at 1269

 

Overnight volume

  • SX 16,701
  • CZ 16,254
  • WU 17,395
  • KC WU 953
  • MWU 272
  • SMZ 3,796
  • BOZ 3,354
  • RRU 21

 

Opening calls

  • Beans 3-5 lower
  • Corn steady mixed
  • Wheat 5-7 higher
  • KC wheat 4-6 higher
  • Minneapolis wheat 2-4 higher
  • Meal .50-1.50 lower
  • Bean oil 10-15 lower
  • Rice 1-3 higher

 

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

 

Nikkei down 1.07%

Hang Seng down .26%

Shanghai Index down .11%

Most world stock markets lower this morning.

 

US June trade deficit $41.54 billion expecting deficit of $44.6 billion

 

Weekly API energy inventory report from yesterday afternoon

  • Crude a draw of 5.5 MB expecting a draw of 1.7 MB
  • Gas a draw of 3.6 MB expecting a build of 300,000
  • Distillates a draw of 544,000 expecting a build of 900,000

 

Tensions in Ukraine and Russia

 

Russian troop increase at Ukraine border raises concerns
Donetsk, Ukraine (CNN) — A new buildup of Russian troops along the Ukraine border raised concerns Tuesday that Moscow might be contemplating another intervention like the one that annexed Crimea earlier this year.

 

China grain closings = beans down 11, corn down 5, meal up 6, palm oil down 20, bean oil down 22

 

Malaysian palm oil down 5

 

Shandong Sunrise Grain and Oil Trading LTD estimated China’s ‘14/15 bean imports at 78.0 MMT vs. USDA estimate of 73.0 MMT and vs. 69.0 MMT in ‘13/14

 

Sunrise to import 13.0 MMT of beans in 2014 vs. 11.0 MMT in 2013.

 

Iraq bought 50,000 tons of Black Sea origin wheat for August shipment

 

Philippines seeks 100,000 tons of feed wheat for Dec-Jan shipment

 

Japan received no offers in SBS tender for 120,000 feed wheat and 200,000 feed barley for Nov shipment

 

Japan is seeking 120,000 feed wheat and 200,000 feed barley via SBS tender for Nov shipment

 

More rains in Germany , France, and Poland adding more concerns about their wheat quality.

 

Ideal crop weather in the Midwest.

 

Monday night the Andersons Maumee OH canceled 15 wheat receipts  . 144 receipts remain open.

 

Yesterday night 1 new ethanol receipt was registered.

 

307 bean oil deliveries with the date at 8/04/014

 

1 ethanol delivery with the date current

 

Open interest as of yesterday’s close

  • Total corn 1,378,353 open, up 426
  • Aug beans   5,106 open, down 1,133
  • Total beans  627,565 open, up 3,583
  • Aug meal 2,382 open, down 639
  • Total meal 309,636 open, up 908
  • Aug bean oil 1,129 open, down 682
  • Total bean oil  326,077 open, down 1,466
  • Total wheat 438,983 open, up 662
  • Total KC wheat 143,987 open, down 824

 

Upcoming reports/events

  • Weekly DOE energy inventory report comes out today at 930 am CST. Expecting
    • Crude a draw of 1.55 MB
    • Gas unchanged
    • Distillates a build of 850,000
  • Weekly US ethanol plant production report comes out today at 930 am CST
  • Reuters report estimates for Aug 12th USDA report should be out sometime today.
  • ECB meets tomorrow
  • CONAB comes out tomorrow with their ‘13/14 Brazilian crop estimate updates
  • Goldman Sachs roll starts tomorrow and runs for 5 days. They will be rolling long Sept corn, wheat, and KC wheat positions into December.
  • 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
  • China’s July trade balance report comes out Thursday night/early Friday morning
  • MPOB comes out on Monday Aug 11th with their July palm oil data report
  • Surveyors SGS and Intertek will come out with their Malaysian Aug 1-10th palm oil export estimates on Aug 11th
  • USDA supply and demand and crop production report comes out on Aug 12th at 11 am CST.
  • Last trading day for August futures is August 14th. Futures expire at noon CST.
  • NOPA July crush report comes out on Friday Aug 15th at 11 am CST
  • Pro Farmer US Midwest crop tour August 18-21St
  • Stats Canada comes out on August 21st with their Canadian crop estimate updates
  • Sept options expire on Friday Aug 22nd . Options expire at noon CST.

 

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