News From The Grain Floor 9/11/14

Good morning.

 

“We shall never forget
We shall keep this day
We shall keep the events and the tears
In our minds, our memory and our hearts
and take them with us as we carry on.”

–          The Remember 911 Memorial Website

 

 

 

USDA crop production and supply and demand report comes out today at 11 am CST. See attachment for recap table for report.

 

USDA announced 240,000 US soybeans sold to China for ‘14/15

 

USDA announced 360,000 optional origin soybeans sold to China for ‘14/15

 

USDA announced 210,000 US beans sold to unknown for ‘14/15 shipment

 

Overnight closes

  • SX down 3 ¼ at 990 ½
  • CZ down 2 ¼ at 343 ½
  • WZ down 3 ¼ at 516 ½
  • KC WZ down 1 ½ at 614
  • MWZ down 2 ¼ at 596 ½
  • SMZ down 2.40 at 334.80
  • BOZ up 5 at 3188
  • RRX up 17 at 1250

 

Nov beans made a new contract low last night of 986 ¼

 

Dec wheat made a new contract low last night of 516 ½

 

Dec KC wheat made a new contract low last night of 612 ¾

 

Dec Minneapolis wheat made a new contract low last night of 595 ½

 

Dec meal made a new contract low last night of 334.00

 

Overnight volume

  • SX 13,506
  • CZ 10,055
  • WZ 6,602
  • KC WZ 486
  • MWZ 240
  • SMZ 5,626
  • BOZ 8,316
  • RRX 38

 

Opening calls

  • Beans 3-5 lower
  • Corn 2-4 lower
  • Wheat 2-4 lower
  • KC wheat 1-2 lower
  • Minneapolis wheat 2-3 lower
  • Meal 2.00-3.00 lower
  • Bean oil  steady to 10 higher
  • Rice 10-20 higher

 

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

 

Nikkei up .75%

Hang Seng down .17%

Shanghai Index down .29%

 

Weekly US jobless claims came out this morning at +11K to 315K expecting 300K

 

China grain closings = beans down 1, corn down 8, meal up 2, palm oil up 12, and bean oil down 20

 

Malaysian palm oil up 39

 

Saudi Arabia seeks 550,000 tons of optional  origin hard wheat for Dec-Jan shipment

 

Japan bought 109,800 tons of food wheat for Oct Nov shipment. Breakdown

  • 26,030 tons of US HRW wheat
  • 25,611 tons of dark northern spring US wheat
  • 29,379 tons of Canadian western red spring wheat
  • 28,780 tons of Australian white wheat

 

 

Hearing on Tuesday China bought 2 Brazilian bean cargoes for March shipment

 

Most analysts are expecting a conservative USDA number, the surprise will be if the USDA number is above estimates.

 

Brazil to hold another corn auction today

 

Weekly US export sales report came out today at 730 am CST

  • Wheat ‘14/15 690,200 tons (expecting 250-450,000 tons)
  • Corn ‘13/14 67,800 ‘14/15 563,200 tons (expecting 450-650,000 tons)
  • Beans ‘13/14 -10,300 ‘14/15 984,300 tons (expecting 750,000 – 1.0 M tons)
  • Meal ‘13/14 14,100 ‘14/15 203,200 tons (expecting 100,000-225,000 tons)
  • Beans oil ‘13/14 5,800 ‘14/15 8,100 tons (expecting 0-40,000 tons)

 

Export highlights

  • Wheat – Net sales of 690,200 metric tons for delivery in the 2014/2015 marketing year were up noticeably from the previous week and from the prior 4-week average.  Increases were reported for Taiwan (99,500 MT), Malaysia (93,300 MT), the Philippines (91,500 MT), Nigeria (80,000 MT), South Korea (52,400 MT), Chile (47,300 MT), and Colombia (45,700 MT, including 25,000 MT switched from Panama and decreases of 10,000 MT).  Decreases were reported for unknown destinations (46,600 MT), Panama (25,000 MT), and the Dominican Republic (4,400 MT).  Exports of 559,200 MT were down 25 percent from the previous week, but unchanged from the prior 4-week average.  The primary destinations were Mexico (82,400 MT), Indonesia (68,700 MT), Japan (51,600 MT), Thailand (51,500 MT), Chile (47,300 MT), Colombia (44,200 MT), and Italy (37,700 MT).
  • Corn – Net sales for the 2014/2015 marketing year, which began September 1, totaled 563,200 MT.  Increases reported for Mexico (127,100 MT), Japan (108,400 MT, including 57,900 MT switched from unknown destinations and decrease of 82,300 MT), unknown destinations (80,700 MT), South Korea (68,100 MT, including 63,000 MT switched from unknown destinations), and Costa Rica (52,700 MT), were partially offset by decreases for Colombia (22,900 MT) and Guatemala (12,700 MT).  A total of 1,341,400 MT in sales were carried over from the 2013/2014 marketing year, which ended August 31.  Exports for the period ending August 31 of 507,500 MT brought accumulated exports to 47,375,100 MT, up noticeably from the prior year’s total of 18,044,200 MT.  The primary destinations were Japan (244,200 MT), Mexico (119,500 MT), Saudi Arabia (71,500 MT), Honduras (31,800 MT), and Colombia (19,900 MT).  Exports for September 1-4 totaled 695,500 MT, with Mexico (196,700 MT), Japan (142,900 MT), South Korea (133,100 MT), Spain (66,000 MT), and El Salvador (28,600 MT) being the primary destinations.
  • Beans – Net sales for the 2014/2015 marketing year, which began September 1, totaled 984,300 MT.  Increases were reported for China (658,200 MT), unknown destinations (105,000 MT), Indonesia (94,400 MT, including 62,000 MT switched from unknown destinations), Turkey (38,000 MT), and Japan (20,700 MT).  Net sales of 70,000 MT for 2015/2016 were for unknown destinations.  A total of 1,340,500 MT in sales were carried over from the 2013/2014 marketing year, which ended August 31.  Exports for the period ending August 31 of 111,600 MT brought accumulated exports to 44,526,100 MT, up 23 percent from the prior year’s total of 36,243,000 MT.  The primary destinations were the Netherlands (64,800 MT), Japan (22,100 MT), Mexico (10,700 MT), Indonesia (9,700 MT), and Thailand (1,700 MT).  Exports for September 1-4 totaled 72,900 MT, with Indonesia (62,100 MT), Mexico (8,800 MT), and Taiwan (1,400 MT) being the primary destinations. 
  • Meal- Net sales of 14,100 MT for 2013/2014 were for Honduras (10,200 MT, including 9,400 MT switched from unknown destinations), Mexico (6,900 MT), Canada (5,700 MT), Guatemala (2,800 MT), Morocco (2,000 MT), and Japan (1,600 MT).  Decreases were reported for Venezuela (12,000 MT), unknown destinations (4,900 MT), and Nicaragua (1,500 MT).  Net sales of 203,200 MT for 2014/2015 were reported primarily for unknown destinations (90,000 MT), the Dominican Republic (55,500 MT), Venezuela (27,000 MT), and Costa Rica (10,500 MT).  Exports of 89,400 MT were up 2 percent from the previous week and 7 percent from the prior 4-week average.  The primary destinations were Mexico (27,500 MT), Canada (18,800 MT), Honduras (13,000 MT), Panama (11,000 MT), and El Salvador(8,900MT).                                                       
  • Bean oil – Net sales of 5,800 MT for 2013/2014 were for Mexico (4,700 MT), Venezuela (2,000 MT, switched from unknown destinations), Guatemala (1,000 MT), and Canada (100 MT).  Decreases were reported for unknown destinations (2,000 MT).  Net sales of 8,100 MT for 2014/2015 were reported for the Dominican Republic.  Exports of 6,100 MT were up 72 percent from the previous week, but down 48 percent from the prior 4-week average.  The primary destinations were Nicaragua (2,000 MT), Venezuela (2,000 MT), Mexico (1,800 MT), and Canada (100 MT).

 

250 new wheat receipts registered from CIRM Chicago IL

 

50 wheat receipts canceled out of Sunrise Coop Clyde OH

 

Total wheat receipts registered now at 634

 

33 bean oil receipts canceled yesterday afternoon out of Zeeland Farm Services Portage IN . A total 4,834 receipts remain open

 

Deliveries

  • Bean oil 53 with the date current
  • Wheat 250 with the date at 8/25/14
  • No KC wheat
  • No Minneapolis wheat
  • No corn
  • No beans
  • No meal

 

Open interest as of yesterday’s close

  • Sept corn 1,703 open, down 998
  • Total corn 1,230,028 open, up 256
  • Sept beans 98 open, down 64
  • Total beans 697,602 open, up 2,590
  • Sept meal 394 open, down 408
  • Total meal 334,552 open, down 2,835
  • Sept bean oil 57 open, down 34
  • Total bean oil 371,554 open, down 192
  • Sept wheat 433 open, down 112
  • Total wheat 393,146 open, up 1,430
  • Sept KC wheat 61 open, down 11
  • Total KC wheat 139,989 open, up 1,796

 

Upcoming reports/events

  • Weekly EIA Nat Gas storage report comes out today at 930 am CST, expecting +85 BCF
  • USDA crop production and supply and demand report comes out today at 11 am CST , see attachment for recap table for report
  • Last trading day for Sept futures is tomorrow. Futures expire at noon CST.
  • Weekly COT report comes out tomorrow at 230 pm CST.
  • Dorab Mistry to speak at conference in Shanghai on Sept 15th
  • FSA acreage certification stats comes out on September 15th.

 

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