News From The Grain Floor 06/25/15

Weather Highlights:

The weather this morning is wetter compared to yesterday with some rains continuing in the southern part of the corn belt into Saturday. Next week should be wet as well in most of the corn belt but especially in Missouri, Illinois, Indiana and Ohio. Cooler weather across the corn belt and delta starts today. The cool weather should last until around the 4th of July weekend when heat should expand into the western plains with normal temps coming back to the corn belt and delta.  See maps below.

Overnight closes

  • SX up 9 ¼ at 965 ¼
  • CZ up 2 ¼ at 382 ¾
  • WU up 2 ½ at 525 ¾
  • KC WU up 2 ¼ at 535 ¼
  • MWU up 2 at 577 ¾
  • SMZ up 3.10 at 317.50
  • BOZ up 18 at 3388

Overnight volume

  • SX 18,779
  • CZ  14,374
  • WU 10,714
  • KC WU 3,068
  • MWU 259
  • SMZ 4,257
  • BOZ 5,915

Overnight option volume

  • Corn 3,209
  • Beans 5,136
  • Wheat 2,538
  • Soymeal 142
  • Bean oil 9

Active strikes in overnight trade

  • SX 1100 call – traded 1,224

Significant OI changes from previous session

  • CN 400 C decreased 5,560 (total 35,726)
  • CN 360 P decreased 2,581 (total 10,280)
  • CU 400 C increased 8,036 (total 42,852)
  • CU 450 C increased 7,283 (total 28,517)
  • CZ 310 P increased 3,664 (total 30,092)
  • SQ 960 C decreased 2,865 (total 5,402)
  • SX 1040 C increased 3,708 (total 17,699)
  • BOZ 35 C increased 2,574 (total 4,129)
  • BOZ 40 C increased 2,723 (total 2,853)

Total EOO’s cleared from previous session

Contract Year Month

Product Desc

P/C Ind

Strike Price

Ex Pit Volume – CME Group

201509

CORN OPTIONS C

400

201

201509

CHICAGO SRW WHEAT OPTIONS P

520

122

201509

CHICAGO SRW WHEAT OPTIONS P

530

43

201512

CORN OPTIONS P

410

43

201509

CORN OPTIONS C

390

24

201509

CHICAGO SRW WHEAT OPTIONS P

510

23

201509

CHICAGO SRW WHEAT OPTIONS P

500

20

201509

CORN OPTIONS P

410

18

201509

CORN OPTIONS C

410

16

201509

CORN OPTIONS P

400

16

201611

SOYBEAN OPTIONS C

1,060

1

Funds

COT

COT

COT

Current

9-Jun

16-Jun

to COT

17-Jun

18-Jun

19-Jun

22-Jun

23-Jun

24-Jun

Estimate

Corn

-128856

-186216

-57360

10000

-4000

-9000

8000

16000

0

-165216

Wheat

-64619

-76997

-12378

0

-4000

0

7000

10000

-4000

-67997

Soybeans

-64155

-44220

19935

9000

0

-2000

8000

0

-3000

-32220

Soymeal

-768

14258

15026

5000

4000

-1000

5000

0

-3000

24258

Soyoil

79811

45866

-33945

-1000

-6000

3000

3000

0

3000

47866

News

Nikkei down .46%

Hang Seng down 1.0%

Shanghai Index down 3.5%

China grain markets closed beans down 1, corn down 5, meal down 6, palm oil up 60, and bean oil up 26

Malaysian palm oil down 6.

Taiwan bought 130,000 tons of Brazilian corn for October shipment

South Korea KFMC bought 31,700 tons of Australian wheat for November shipment

Japan bought 114,510 tons of food wheat from the US and Canada for July –Aug shipment

Weekly US export sales report :
Wheat =  15-16 Net 434,300 Tons; 16-17 1,300 (expecting 200-450,000 tons)
Corn = 14-15 Net 496,800 Tons; 15-16 297,500 (expecting 600-900,000 tons)
Soybeans =  14-15 Net 118,800 Tons; 15-16 202,500 (expecting 350-700,000 tons)
Soymeal = 14-15 Net 106,300 Tons; 15-16 210,500 (expecting 75-275,000 tons)
Soy oil = 14-15 Net 9,500 Tons; 15-16 4,500 (expecting 0-10,000 tons)

Export highlights

Wheat = Net sales totaling 434,300 metric tons were reported for delivery in marketing year 2015/2016.  The primary destinations were Taiwan (99,500 MT), Mexico (89,400 MT), Japan (87,100 MT, including 25,000 MT switched from unknown destinations), Nigeria (42,600 MT), Italy (34,100 MT), and Ecuador (18,400 MT, including 20,000 MT switched from unknown destinations and decreases of 1,600 MT).  Decreases were reported for Barbados (2,300 MT) and South Korea (1,000 MT).  Net sales of 1,300 MT for 2016/2017 were reported for Italy (1,400 MT), were partially offset by decreases for Mexico (200 MT).   Exports of 388,300 MT were reported to Italy (56,600 MT), South Korea (50,300 MT), Taiwan (42,200 MT), Mexico (35,600 MT), Peru (33,000 MT), and Nigeria (32,600 MT).

Corn = Net sales of 496,800 MT for delivery in 2014/2015 were down 21 percent from the previous week and 11 percent from the prior 4-week average.  Increases were reported for Japan (352,700 MT, including 102,400 MT switched from unknown destinations and decreases of 30,000 MT), South Korea (115,800 MT, including 180,000 MT switched from unknown destinations and decreases of 66,000 MT), Colombia (74,300 MT), Taiwan (73,700 MT, including 63,000 MT switched from unknown destinations), China (60,500 MT, including 55,000 MT switched from unknown destinations), and Mexico (39,200 MT).  Decreases were reported for unknown destinations (287,500 MT), the French West Indies (10,000 MT), and New Zealand (5,900 MT).  Net sales of 297,500 MT for 2015/2016 were reported for Mexico (220,200 MT), unknown destinations (48,600 MT), Taiwan (23,000 MT), the French West Indies (5,000 MT), and Guatemala (700 MT).  Exports of 1,126,000 MT were up 8 percent from the previous week and 16 percent from the prior 4-week average.  The primary destinations were Japan (468,700 MT), Mexico (204,700 MT), South Korea (124,600 MT), Colombia (96,000 MT), Taiwan (71,400 MT), and China (61,100 MT).

Beans = Net sales of 118,800 MT for 2014/2015 were down 11 percent from the previous week and 37 percent from the prior 4-week average.  Increases were reported for Mexico (76,600 MT), unknown destinations (28,400 MT), Japan (27,300 MT), Pakistan (17,000 MT), Turkey (15,000 MT), and Colombia (14,400 MT).  Decreases were reported for China (60,500 MT), Israel (10,500 MT), and Costa Rica (1,000 MT).  Net sales of 202,500 MT for 2015/2016 were reported for unknown destinations (119,300 MT), Mexico (35,900 MT), Japan (22,300 MT), Taiwan (21,500 MT), Vietnam (3,000 MT), and Indonesia (500 MT).  Exports of 150,000 MT were down 58 percent from the previous week and 49 percent from the prior 4-week average.  The primary destinations were Mexico (59,800 MT), Japan (29,700 MT), Taiwan (26,700 MT), Peru (13,200 MT), and Canada (4,800 MT).

Meal = Net sales of 106,300 MT for 2014/2015 were up 11 percent from the previous week and 6 percent from the prior 4-week average.  Increases were reported for Colombia (30,500 MT), Venezuela (28,000 MT), Canada (14,700 MT), Guatemala (11,900 MT, including 7,900 MT switched from unknown destinations), Honduras (10,000 MT, including 8,400 MT switched from unknown destinations), and Ecuador (4,800 MT, including 10,000 MT switched from unknown destinations and decreases of 5,200 MT).  Decreases were reported for unknown destinations (10,800 MT), Mexico (6,500 MT), and the French West Indies (2,200 MT).  Net sales of 210,500 MT for 2015/2016 were reported primarily for Mexico (112,200 MT) and Spain (90,000 MT).  Exports of 185,300 MT were up 9 percent from the previous week, but down 9 percent from the prior 4-week average.  The primary destinations were the Philippines (49,500 MT), Ecuador (37,800 MT), Canada (20,600 MT), Mexico (16,500 MT), Colombia (14,800 MT), and Peru (13,000 MT).

Bean oil = Net sales of 9,500 MT for 2014/2015 were up noticeably from the previous week, but down 15 percent from the prior 4-week average.   Increases were reported for Venezuela (10,000 MT, switched from Panama), Mexico (8,900 MT), and El Salvador (1,500 MT, including 1,200 MT switched from Guatemala).  Decreases were reported for Panama (10,000 MT) and Guatemala (1,200 MT).  Exports of 15,400 MT were up noticeably from the previous week and 13 percent from the prior 4-week average.  The primary destinations were Venezuela (10,000 MT), Mexico (4,400 MT), and Trinidad (800 MT).

Receipt Registrations as of yesterday afternoon – no changes

  • Wheat = 18
  • Oats = 12
  • Corn =7
  • Ethanol = 22
  • DDGs = 0
  • Beans = 0
  • Bean oil = 3,205
  • Soymeal = 0
  • Rice = 1,466
  • KC wheat = 48
  • Minneapolis wheat =  522

Open interest as of yesterday’s close

  • Total corn – 1,403,661 open, down 23,344
  • Total soybeans – 695,061 open, down 6,477
  • Total soymeal – 414,449 open, up 2,540
  • Total bean oil – 401,214 open, up 249
  • Total wheat – 426,509 open, down 7,432
  • Total KC wheat – 172,601 open, up 690

Upcoming reports/events.

  • Weekly EIA Nat Gas storage report comes out today at 930 am CST
  • July options expire tomorrow at 115 pm CST.
  • Weekly COT report comes out tomorrow at 230 pm CST
  • USDA acreage and quarterly stocks report Tuesday June 30th
  • USDA to restart monthly Census crush reports in July 2015.

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