News From The Grain Floor 9/17/14

Good morning.

 

In tragedy there is opportunity

–          Art Kreitrman

 

USDA announced 620,000 tons of US beans sold to China for ‘14/15

 

Overnight closes

  • SX up 1 ½ at 982 ¼
  • CZ down 2 ¼ at 341 ½
  • WZ down a ¼ at 496
  • KC WZ down 2 ½ at 580 ¾
  • MWZ down ¾ at 564 ½
  • SMZ down .20 at 325.90
  • BOZ up 21 at 3321
  • RRX down 7 at 1264.50

 

Dec Minneapolis wheat made a new contract low overnight of 563 ¼

 

Overnight volume

  • SX 13,560
  • CZ 7,750
  • WZ 3,001
  • KC WZ 816
  • MWZ 316
  • SMZ 2,661
  • BOZ 7,886
  • RRX 59

 

Opening calls

  • Beans 1-3 higher
  • Corn 1-3 lower
  • Wheat steady easier
  • KC wheat 1-3 lower
  • Minneapolis wheat steady easier
  • Meal steady to .50 lower
  • Bean oil 15-25 higher
  • Rice 6-8 lower

 

Gold and stock market higher. Dollar, crude, and silver lower

 

Nikkei down .14%

Hang Seng up .98%

Shanghai index up .49%

 

Second day of the FOMC policy meeting. Fed announcement today at 1 pm CST.

 

Weekly API energy inventory report from yesterday

  • Crude a build of 3.3 MB expecting a draw of 1.6 MB
  • Gas a draw of 1.2 MB expecting a draw of 300,000 barrels
  • Distillates a build of 1.0 MB expecting a build of 486,000 barrels

 

China grain closings – beans down 22, corn down 6, meal up 8, palm oil down 4, and bean oil down 40.

 

Malaysian palm oil up 22.

 

Turkey bought 200,000 tons of milling wheat

 

Iran SLAL bought 300,000 tons of corn for Sept-Oct shipment

 

Iran SLAL bought 150,000 tons of feed barley for Sept-Oct shipment

 

Iran SLAL bought 150,000 soybean meal for Sept-Oct shipment

 

Tunisia seeks 92,000 tons of optional origin wheat for Nov-Dec shipment

 

Tunisia seeks 75,000 optional origin barley for Nov-Dec shipment

 

South Korea NOFI seeks up to 210,000 tons of optional origin corn for Jan-Feb shipment

 

South Korea NOFI seeks up to 55,000 tons of South American or Indian origin soymeal for March shipment

 

Japan gets no offers for feed wheat and or barley via SBS tender for Dec shipment

 

Japan is seeks 120,000 feed wheat and 200,000 feed barley via SVBS tender for Dec shipment

 

Malaysian analysts said Malaysia’s Sept 1-15th palm oil output fell 11% from Aug 1-15th

 

Hearing Sinograin (China) bought 2 Argentine bean cargoes yesterday for May-June shipment

 

Hearing Sinograin (China) bought 2 US bean cargoes for Dec-Jan shipment yesterday.

 

Hearing China bought 2-3 cargoes of Argentine soybean cargoes Monday or Tuesday for March –April shipment

 

Hearing China bought 3-5 cargoes of Brazilian bean cargoes this week for Feb-March shipment

 

CNGOIC issued a warning about Chinese crush margins being at two year lows. They said that Chinese bean import might fall by 25% in ‘14/15 due to poor margins.

 

China’s Ministry of Commerce estimated Sept China bean imports at 4.98 MMT

 

China’s Ministry of Commerce estimated Sept China bean oil imports at 114,200 tons

 

China’s Ministry of Commerce estimated Sept China palm oil imports at 149,900 tons

 

China’ the world’s top buyer of DDGs has failed to settle a row with the US on how to eliminate genetically altered content from a product worth $1.3 billion in trade so far this year, two industry sources said today – Reuters

 

URGARA (Argentina Union of Grain Receivers and Annexes) will hold a 24 hour strike today

 

Standard Chartered said there are mounting concerns over the poor quality of European wheat, wheat is now more likely to compete against corn for global feed use.

 

US weather favorable.

 

Good/excellent US early corn and bean yields still being reported.

 

Agritel said weather conditions in Europe remains favorable for corn crops.

 

Agritel said EU corn harvest is heading for record yields this season

 

Some analysts estimating EU corn crop at 70+ MMT (record)

 

One corn receipt was canceled yesterday afternoon out of ADM Lacon IL. 41 corn receipts remain open

 

12 soymeal receipts were canceled yesterday afternoon out of Owensboro Grain Company Owensboro KY. 0 soymeal receipts are registered

 

60 new rice receipts registered yesterday afternoon. 60 rice receipts are registered.

 

Bean receipts unchanged from yesterday. 0 bean receipts are registered

 

Wheat receipts unchanged from yesterday. 634 wheat receipts are registered

 

KC wheat receipts unchanged from yesterday. 924 KC wheat receipts are registered

 

Bean oil receipts unchanged from yesterday. 4,701 bean oil receipts are registered

 

Deliveries

  • Minneapolis wheat 154, no oldest date all contracts filled
  • Rice 60 with the date at 8/08/14

 

Open interest as of yesterday’s close

  • Total corn 1,255,503 open, up 4,529
  • Total beans 729,320 open, up 8,930
  • Total meal 340,544 open, up 1,341
  • Total bean oil369,341 open, up 125
  • Total wheat 398,363 open, up 4,507
  • Total KC wheat 145,585 open, up 148

 

Upcoming reports/events

  • Weekly DOE energy inventory report comes out today at 930 am CST. Expecting
    • Crude a draw of 1.244 MB
    • Gas a draw of 105,000 barrels
    • Distillates a build of 635,000 barrels
  • Weekly US ethanol plant production comes out today at 930 am CST
  • SUPARA (Customs Union of Argentine Republic) to hold a 4 day strike starting tomorrow
  • Weekly US jobless claims report come out tomorrow at 730 am CST
  • Weekly US export sales report comes out tomorrow at 730 am CST
  • CONAB to hold a new corn auction on Thursday. They will offer 1.75 MMT of corn.
  • Weekly EIA Nat Gas storage report comes out tomorrow at 930 am CST
  • SGS and Intertek Agri Services come out on Monday Sept 22nd with their Malaysian Sept 1-20th palm oil export estimates
  • Last trading day for October options is Friday September 26th. Options expire on the close at 115 pm CST.

 

 

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