Showing posts with label wheat. Show all posts
Showing posts with label wheat. Show all posts

Thursday, April 24, 2014

FC Morning Grain Market Commentary

Good morning!

The weekly export sales report was out this morning and it was pretty much as expected.  Corn sales were decent – right in the middle of the range of guesses.  Soybeans sales were near zero (but still a touch positive) which is actually right in the middle of the range of guesses.  New crop soybean sales were a little disappointing, which could cause new crop prices to lose a little ground to old crop today. Old crop soybean meal sales were big, which will offer support to beans.  Overall – not much to see here. 

Generally speaking corn and wheat are both trading weather, and they both view the weather forecasts as friendly.  Wheat is rallying thanks to dry weather in the plains while corn is rallying thanks to wet weather in the corn belt.  Long term, this moisture we have been getting will likely be viewed as bearish to corn prices (we need the rain) – but not until we know the crop is in the ground.

Opening Calls
Corn 1 to 3 cents higher
Soybeans 3 to 6 cents higher

Have a great day!
Dustin Weiner 
@fccoopgrain





Monday, April 14, 2014

FC Morning Market Comments 04.14.14

Good morning!

The markets rebounded overnight, bouncing up from Friday’s lower close.  The wheat market seems to be leading the charge higher (up double digits) likely due to ongoing weather concerns in US wheat country along with escalating tensions in Russia/Ukraine.  Winter wheat crop conditions were already poor (at a 12-yr low) thanks to the drought in the Southern Plains – and now with freezing temps in the forecast for tomorrow morning it looks like they could get worse.

Although some of us here in Iowa will feel that the rains over the weekend were beneficial – the market is trading this cool wet weather as something that is friendly to prices as corn planting will have to wait a little while longer.  Speaking of planting, the USDA’s first planting progress report will be out this afternoon and the market is expecting the US to be just under 5% planted on corn.  This number would be pretty close to normal, and it’s probably too early to get worked up over planting delays…

Opening Calls
Corn 2 to 4 cents higher
Soybeans steady to 5c higher

Have a great day!

@fccoopgrain


Thursday, March 13, 2014

FC Morning Market Commentary for March 13, 2014

Good morning!

The markets were steady to higher last night and the weekly export sales report that was released at 7:30am did very little to change that.  Corn sales and bean sales were both near the bottom range of guesses - -so no major surprises there.  The rumors this week (and the reason for the sharp decline in soybean prices) have center around sales cancellations.  If those rumors are true – they will be reflected in next week’s report.

The wheat market continues to find strength thanks to fund buying and continuing problems in Ukraine.  This also help keep the corn market propped up.  Crimea will vote this Sunday on whether or not to leave the Ukraine for Russia, meanwhile Ukraine’s parliament voted to create a 60,000 member National Guard to help bolster the country’s defenses. 

Outside markets are higher with Crude Oil higher at this time (UP 36 @ 98.36) along with a lower US Dollar (139.41 vs. Euro) and the US stock market is higher (UP 30).

Opening Calls
Corn steady to 1c higher
Soybeans 1 to 4 cents higher

Have a great day!
 Dustin Weiner
@fccoopgrain

Tuesday, March 11, 2014

FC Mid Day Grain Market Commentary for 3/11/2014

Midday Comments 03/11/14

Tuesday, March 11, 2014, 12:49 pm
Submitted by: Dustin Weiner


Good afternoon!
 
Feels like an old-fashioned “Turnaround Tuesday” today as the markets recover from yesterday’s losses.  Corn is rallying nicely after the European Union threatened sanctions against Russia in protest of its advancement into the Crimean peninsula of Ukraine.  This has the wheat market firmer which of course spills into corn – FYI Russia is on track to be the 5th largest exporter of wheat this year (and Ukraine is the 6th largest) so it’s a big deal.  Safe to say grain traders are watching this situation closely and for the time being the cure to the uneasy, nervous feelings this situation brings is to buy buy buy. 
 
Currently:
·         Corn is 3 to 5 cents higher
·         Soybeans are steady (old crop) and up 10 to 15 cents on new crop. 
o   This price action could be reflective of old crop sales cancellations?  Even rumors about that would cause people to exit the old/new bean spread and explain what we see today
 


 
 
 

Thursday, December 19, 2013

FC Morning Market Commentary for December 19, 2013

December 19, 2013

The weekly export sales report was out this morning and sales were solid for corn, but soybean sales were a little disappointing, coming out below the estimates.  Yesterday was not a good day for the soybean chart, with beans making new highs for the move only to close (sharply) lower at the end of the day.  Soybeans have been in a 30-cent range this month, it will be interesting to see if that range holds – or if we fall out the bottom.

Other than that – quiet.  The U.S. and China will hold their latest round of trade talks this week, you can expect the recent U.S. corn rejections by China to be on the agenda.

Opening Calls
Corn steady to 2c higher
Soybeans 5 to 8 cents lower

Have a great day!
Dustin Weiner


Tuesday, February 19, 2013

A.M. Grain Market Commentary for 2/19/2013

2-19-13 AM Comments

Tuesday, February 19, 2013, 8:05 am
Submitted by: Jon Setterdahl

Markets back trading today following the 3-day weekend. South American precip over the weekend was scattered in Argentina, providing soybeans a reason to be higher this morning.  Private crop estimates edging higher for Brazilian soybeans and Argentine corn.
Other news is fairly light. Ag Outlook Forum taking place in D.C. this week, with ’13-’14 crop balance sheets expected to be released sometime late week. India announced the intention to sell 5.0 MMT of feed wheat from gov’t reserve stocks in the next few months.
US Midwest preparing for mid-week storm to provide much-needed moisture to western corn and wheat growing areas.
Thus far corn is steady and soybeans are up 10-20 cents

Thursday, February 14, 2013

USDA sees one more boom year for U.S. farmers

USDA sees one more boom year for U.S. farmers - Dealer Update Articles - Ag Professional:

'via Blog this'

The 7-year-old U.S. agricultural boom, driven by record-high commodity prices and painfully tight supplies, is expected to peak this year and then come to an abrupt end as high costs start to bite, the government projected on Monday.
The U.S. Agriculture Department said farm income would soar to a record $127.6 billion this year, up 15 percent, thanks to high market prices and crop insurance payments that will offset losses from the worst drought in more than half a century.
Farm income would fall by one-third next year, to $96.9 billion, said USDA, because corn, wheat and soybeans — the three most widely grown crops - will fetch dramatically lower prices with bumper crops expected this fall.
The abrupt contraction in farm income could prompt operators to slow purchases of equipment such as trucks, tractors and combines, structures such as grain bins, or crop land. Land prices soared along with grain prices since 2006.
High production costs, up 12 percent in two years, will compound the effect of lower earnings for crop farmers. But lower prices for grains and oilseeds will be a welcome relief for livestock producers who have complained of ruinously high prices for feed for cattle, hogs and poultry.
"While income declines from the 2013 record through 2015, it remains well above the average of the previous decade," said USDA in a battery of projections for farm output, income and exports this year.
The projections were based on conditions at the end of 2012 and will be updated at USDA's annual Outlook Forum at the end of the month.
Swollen Farm Exports
U.S. farm exports are projected at a record $145 billion this fiscal year, which ends on Sept 30, up $10 billion from the previous year. USDA said the record "largely reflects high commodity prices."
Agricultural exports would drop by $3 billion in fiscal 2014, it said, and by an additional $5 billion in fiscal 2015.
Assuming yields return to normal this year, farmers will harvest a record 14.4 billion bushels of corn, up 34 percent from last year; the second-largest soybean crop on record at 3.335 billion bushels; and a medium-sized wheat crop of 2.19 billion bushels, said USDA.
Market prices would plunge this fall as a result, said USDA. It projected corn would sell for an average $5.40 a bushel at the farm-gate, down nearly $2 from the record-high season-average price forecast for this year.
Soybean prices would be nearly $3 below the record $14.30 a bushel expected this year. Wheat would be down by 70 cents from the record $7.90 a bushel forecast for this marketing year.

"Nonetheless, U.S. prices for corn, wheat, and soybeans are projected to remain historically high, above pre-2007 levels," USDA said.
Growers were projected to plant 254 million acres - second only to the record set in 2012 - of the eight major U.S. crops, wheat, rice, corn, sorghum, barley, oats, soybeans and upland cotton this year, said USDA.
Persistent Drought Brings Fear For Crop Size
With drought persisting in the U.S. Plains and western Corn Belt, there was high concern about likely yields. The winter wheat crop, grown mostly in the Plains, was most at risk from drought. USDA projected lower yields for wheat and a smaller crop this year than in 2012 despite larger wheat area.
USDA devoted three pages, out of the 105 pages in its annual projections, to explaining the methodology behind its projections of yields. Its corn formula looked at 25 years of crops, including the 1988 and 2012 droughts.
USDA's projected corn yield was higher than other forecasts. A Kansas State University economist, Dan O'Brien, used 157.4 bushels an acre as the likely yield in a forecast last month. David Anderson, agricultural economist at Texas A&M, has used 150 bushels an acre as a reasonable yield that would produce a record crop.
Many analysts believe growers will plant 97 million to 99 million acres of corn, compared to the 96 million acres projected by USDA.
U.S. corn and soybean production has fallen for three years in a row. Traders have focused on bare-bones corn supplies and the need to rebuild stockpiles.
Experts say weather in late summer, when the corn and soybean crops mature, is the greatest determinant of crop size, despite the anxiety about planting crops in a dry seedbed.

Tuesday, December 11, 2012

Morning Grain Market Commentary

December 11, 2012
Farmers Cooperative Company
Ames, Iowa

Good morning!

The USDA monthly S&D report was released this morning and it was, well, boring.  They didn’t change a single thing on corn, leaving supply and demand the same as last month, showing the same projected carryout as last month: 647mb.  This could be viewed as a touch friendly because the trade was expecting a bearish number but overall it is pretty neutral. 

Soybeans changed almost exactly like we thought they would, the USDA cut the projected carryout from 140mb to 130mb – due to an increase in domestic crush.  This is also friendly/neutral.  However, the Brazil and Argentina soybean crops were left unchanged which could be bearish beans as Argentina was expected to be down due to their flooding/planting issues.

The only other thing to read in this report came from the wheat market, as it was bearish wheat (exports shrunk, pushing carryouts up).  This matters to you because corn has a hard time rallying with wheat under pressure…

Overall: nothing to see here.  Can you guess what we get to concentrate on now?  The outside markets.  South American weather.  The fiscal cliff.  How exciting!  So far this morning the outside markets are a little friendly as the dollar is under pressure, SA weather looks good and the fiscal cliff is still out there adding risk as Dec 31 gets closer and closer.

Currently:
Corn is down 3 to 4 cents
Soybeans are down 6 to 9 cents

Have a great day!

Dustin Weiner
@fccoopgrain