From The Floor- An Afternoon Recap 02/04/15

News:

 

China cuts bank reserve ratios in move to stimulate economy.

 

China sold 6.1% out of the 40,270 tons of US soft red winter wheat offered from state reserves this week.

 

South Korea CJ bought 50,000 tons of Australian wheat for June shipment

 

South Korea NOFI passes on tender for 55,000 optional origin feed wheat for June shipment

 

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

 

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

 

Libya made no purchase in tender for 50,000 tons of optional origin milling wheat due to payment problems due to political turmoil.

 

Russia’s Ag Min estimated Russia’s ‘14/15 grain exports at 28-30 MMT .

 

Russia’s Ag Min estimated Russia’s 2015 grain crop at 85-100 MMT vs. 104 MMT in 2014

 

SovEcon estimated Russia’s 2015 grain crop at 86.0 MMT

 

Solvent Extractors Association of India said India should raise import duties on crude vegetable oils to 10% vs. 7.5% currently .

 

Solvent Extractors Association of India estimated India’s ‘14/15 edible oil imports at a record 12.5 MMT vs. ‘13/14 imports of 11.6 MMT

 

Sinograin (China’s Grain Reserves Corp.) bought a record 125.0 MMT of domestic grain in 2014.

 

Rally yesterday reportedly triggered US farmer selling.

 

March corn closed below the 20 day moving average of 384 ½ . March corn settled at 383 ½ .

 

March meal closed below the 20 and 100 day moving average of 336.00. March meal settled at 332.70 .

 

Weekly API energy inventory report from yesterday afternoon

  • Crude a build of 6.1 million barrels , expecting a build of 3.5 million barrels
  • Gas a build of 2.0 million barrels, expecting a build of 67,000 barrels
  • Distillates a build of 278,000 barrels, expecting a draw of 1.8 million barrels

 

Estimated fund activity:

  • Wheat sold 2,000
  • Corn sold 4,000
  • Beans sold 6,000
  • Meal sold 2,000
  • Bean oil sold 2,000

 

Open outcry option activity:

  • Marex bought 7,000 May bean 800 puts at 1-1 ½
  • Macquarie bought 1,000 May bean 980 puts and sold 1,000 March bean 980 puts at 16 ½ debit
  • Macquarie bought 1,500 July bean 940 puts sold 1,500 July corn 1080 calls at 9 5/8 debit and bought 840 July futures at 990
  • Macquarie bought 1,500 March bean 970 puts and sold 3,000 March bean 950 puts at 1/8 – ¼  debit and sold 150 March bean futures at 975 ½
  • Jefferies bought 1,000 May bean 950/900 put spreads at 13 ¼ debit
  • ABN sold 1,000 July bean 1020 calls at 35 ½ -36
  • FI sold 2,000 March bean 990-950 put spreads at 17 ½ -17 ¾
  • Macquarie bought 1,000 May corn 420 calls at 6 7/8
  • Jefferies sold 7,000 March corn 410 calls at 7/8 – 1 1/8 and bought 700 March corn futures at 382
  • Jefferies bought 500 March corn 380 puts and sold 1,000 March corn 370 puts at 3/8 debit and bought 15 March corn futures at 383
  • ABN bought 600 May wheat 470 puts and sold 600 May wheat 560 calls at 3 ½ credit tied to May futures at 515 ½
  • UBS bought 500 July wheat 650 calls at 6
  • ABN sold 800 March wheat 530-580 put spreads at 25 1/8 -25 3/8.
  • New Edge sold 1,000 March meal 300 puts at 50
  • TJM sold 500 May meal 300 puts at 4.75-4.95
  • JP Morgan sold 500 March bean oil 30 puts at 25 tied to March futures at 3063
  • FC Stone bought 1,000 March bean oil 34 calls at 4.5
  • FI bought 1,000 May bean oil 32 -29 combo paid 41-45

 

Upcoming reports/events

  • China’s wheat auction continues. China has been auctioning wheat from reserves Tuesday – Thursday.
  • Weekly US jobless claims report comes out tomorrow at 730 am CST
  • Weekly  US export sales report comes out tomorrow at 730 am CST. Expecting
    • Wheat 300,000 -500,000 tons
    • Corn 800,000 -1.0 million tons
    • Beans 200,000 -500,000 tons
    • Meal 120,000 -300,000 tons
    • Bean oil 5,000 – 50,000 tons
  • US January trade balance report comes out tomorrow at 730 am CST
  • Weekly EIA Nat Gas storage report comes out tomorrow at 930 am CST expecting – 123 BCF

 

Closing vols and ATM straddles

 

Corn:

H vol 22 ¾ 385 str 14-14 ¾

J vol 20 ½ 390 str 23 ½-24 ¼

K vol 22 ¼ 390 str 32-32 ¾

N vol 24 ¼ 400 str 48-49

U vol 26 ½ 410 str 63-64

Z vol 24 ¼ 410 str 70 ¼-71 ¼

 

Beans:

H vol 19 ¼ 970 str 32-33

J vol 19 980 str 55 ½-56 ½

K vol 20 980 str 72-73

N vol 20 ¼ 980 str 99 ½-101

X vol 19 ½ 960 str 125-126 ½

 

Wheat:

H vol 27 510 str 23-25

J vol 24 ½ 510 str 39-41

K vol 26 510 str 48-51

N vol 25 ¼ 520 str 67-69

U vol 26 ¼ 530 str 79-83

Z vol 25 540 str 93-98

 

KC wheat:

H vol 27 550 str 24-25

J vol 24 ½ 560 str 40-42

K vol 24 ¾ 560 str 50-52

N vol 24 ¾ 560 str 68-70

U vol 23 ½ 570 str 81-83

Z vol 23 ½ 590 str 96-99

 

Minneapolis wheat:

H vol 22 ¾ 570 str 21-24

K vol 21 ¾ 570 str 44-48

N vol 23 580 str 62-68

U vol 23 ½ 580 str 74-80

Z vol 23 590 str 90-96

 

Meal:

H vol 25 340 str 13-15

J vol 24.5 340 str 23-25

K vol 24.25 340 str 29-31

N vol 23.25 330 str 36.5-38.5

Q vol 22.5 330 str 38.5-40.5

U vol 21.5 320 str 40-43

Z vol 20 320 str 44-47

 

Bean oil:

H vol 20.5 3050 str 100-110

J vol 20.5 31 str 180-195

K vol 20.25 31 str 225-240

N vol 20 31 str 300-320

Q vol 20 3150 str 325-350

U vol 19.5 3150 str 340-380

Z vol 19.5 31 str 410-450

 

Crush quotes:

OPEN                    CLOSE

MCH          1.02-1.03             95-95.5

MAY           80-81                    76-77

JLY              71-72.5                 69.5-70

AUG           69-71.5                68.5-70

SEP             79.5-84                79-82

OCT            81-84                    81.5-83

DEC            78-80                    79.5-80.5

JAN            77-79                    77-79

MCH6        75-79                   75-83

MAY6        75-78                    75-78

 

Crush and oil share players:

  • No pit crush players today
  • Rosenthal sold 76 July oil share at 32.60-32.68%

 

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