Morning Highlights By Ryan Kelbrants Highlights • The USDA will release their anticipated Grain Stocks and Planted Acreage numbers at 11:00 AM today. This is the largest survey NASS conducts each year. During the first 2 weeks of June, approximately 2,400 interviewers contacted nearly 125,000 farmers to acquire info on stocks and acreage. • Federal Reserve has indicated that the central bank will take more time than previously indicated by Ben Bernanke to scale back on bond purchases. As of 6:45 CT. Dow, Nas and S&P futures are all higher. Asian markets surged the Nikkei closed +3.51%, Hang Seng +1.78 and China’s Shanghai Composite +1.50%. Most European equity markets were slightly lower. • Gold is off 9.60 per oz. at 1202.00 near a 3-year low. Oil, Brent and Natural Gas were all slightly higher. • Deliveries were very light which is indicative to a tight cash market. • Markets close at noon in Chicago and KC and 12:15 in Mpls on July 3rd, Grain markets reopen Friday, July 5th at 8:30 am CT with a regular close. CHS Hedging will close at 3:00 pm CT next Wednesday and Friday. Corn • The average analyst’s estimate for corn is 95.313 mil/ac. versus the USDA’s March 2013 number of 97.282 mil/ac. Corn stocks are estimated between 2.725-2.952 billion bu. compared to 5.399 billion March 1, 2013. • South Korea bought 124,000 MT. from opt-origin for November arrival. • Major corn growing areas in the US are calling for scattered showers in the eastern and southeastern growing areas with highs from 78-93F. Look for mostly favorable growing conditions over the weekend with rains favoring the eastern growing areas. Cooler temperatures are expected to cool into next week with normal to below normal averages. • There were no deliveries. Outlook: Trade should follow the overnight markets on the open and I would anticipate traders to be on the sidelines until we see today’s USDA numbers. Soybeans • Soybeans acres are thought to be 77.933 million on average with ranges from 77.100-79.240 million. In March the USDA reported 77.126 mil/ac. Quarterly stocks are estimated at 442 mil/bu. with trade ideas from 413-500 mil/bu. and the last USDA number of 999 mil/bu. • Malaysian palm oil futures closed down 11 ringgits at 2,344 Sept. The contract was down 95 ringgits for the week. • There were no soybean deliveries. Soy oil had 9 deliveries. Outlook: Strength in the cash market supports the front months (July, Aug) while new crop remains under pressure due to improving conditions Wheat • Today’s acreage for All Wheat is est. at 55.902 mil/ac. Spring wheat 15.132 mil/ac. and Durum at 1.699 mil/ac. USDA in March showed All Wheat at 55.736, Spring wheat 12.701 and Durum at 1.751 mil/ac. • Trading in the pits at the KCBT will end at the market close today. Most of the volume is traded electronically (nearly 90%). Chicago’s CME Group bought Kansas City’s exchange for $126 million in October 2012. Operations will move to Chicago as of July 1. The KCBT was formally chartered in 1876, the same year Johns Hopkins University opened and Alexander Graham Bell patented the telephone. • Iraq is tendering for a minimum of 50,000 MT from U.S., Canada, Germany, Australia, Russian Kazakhstan or Romanian wheat. The tender is open until July 18th. South Korea bought 30,000 MT Canadian wheat. • Wheat deliveries in Chicago totaled 2 contracts. Minneapolis had no deliveries. Outlook: Today’s USDA numbers for direction. Hedge pressure is expected to increase in KC with weather continuing to be a focus of traders as we move into summer. Weekly conditions and progress will be released Monday after the close. Have a great weekend
Posted on: Fri, 28 Jun 2013 13:17:18 +0000
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