Friday, May 14, 2021
Closing Markets: Corn -31 Old & -15 New. Beans +2 Old & +4 New. Wheat +6.
Market Recap:
Corn traded both sides of unchanged today but ultimately ended the session lower. The lack of bullish surprises in Wednesday’s balance sheets sparked profit taking mid-week. Buying interest did resurface in the overnight trade but by late morning, fresh fund liquidation was noted- driving values lower. As of midday funds were estimated to have sold approximately 4,000 contracts of corn. For the week, CN21 lost 88 ½ cents and CZ21 lost 93 ¾ cents. Market news remains little changed. Brazil’s safrinha corn crop continues to struggle, as rainfall remains well below normal across much of Brazil’s 2nd crop growing regions. This was reiterated by USDA dropping Brazil’s 20/21 corn estimate by 7 MMT’s on Wednesday. While old crop corn cancellations were noted by China and unknown this week for the 20/21 marketing year, China was an active buyer of new crop corn. USDA confirmed another flash sale of 1,360,000 metric tons of U.S. corn to China for the 21/22 marketing year this morning. Rain and cool temperatures slowed U.S. planting progress this week. Current weather maps indicate warmer temperatures are in store for the Midwest, but they will be accompanied by an active storm pattern. Rains are expected to be moderate/heavy over the central and southern Midwest and drier in the Northern Plains. NASS will release updated planting progress numbers Monday afternoon.
Soybean futures ended the session mostly higher but were off from gains seen earlier in the day. Fresh buying interest resurfaced overnight as strong soybean oil demand along with concerns over dwindling U.S. bean stocks and the need to ration remaining supplies remains bullish. As of midday, funds were estimated to have bought approximately 5,000 contracts of beans. For the week, SN21 futures lost 3 ½ cents while SX21 futures were 32 ¾ cents lower. Fundamentals remain unchanged as both the 20/21 and 21/22 balance sheets remain tight and global oilseed values remain strong. While U.S. export bean business has slowed, as Brazil continues their active loading pace, the focus is now centered on the processor markets. Crush margins remain solid, largely due to strong soy oil basis levels. Brazilian bean harvest is winding down while soybean harvest in Argentina continues but is behind the normal pace. There has been talk circulating this week that 3 Brazilian bean cargoes are loading for the U.S. East Coast. Rain and cool temperatures have slowed U.S. planting progress this week. NASS will release updated planting progress numbers Monday afternoon.
Funds Daily
C +213,000 (-40,000); S +121,000 (+3,000); W -39,000 (+3,000); SM +50,000 (-); BO +60,000 (+7,000)
Have a great evening!!!!
Chelsey White
Emery Manager & Originator:: Topflight Grain Cooperative, Inc.
593 Emery Rd :: Maroa, IL 61756
Phone:: 217-794-2240
E-Mail:: cwhite@tfgrain.com
Web:: www.topflightgrain.com
This material should be construed as market commentary, merely observing economic, political and/or market conditions, and not intended to refer to any trading strategy, promotional element or quality of service provided by Topflight Grain Cooperative, Inc. Topflight Grain is not responsible for any redistribution of this material by third parties, or any trading decisions taken by persons not intended to view this material. Information contained herein was obtained from sources believed to be reliable but is not guaranteed as to its accuracy. Contact Topflight Grains designated personnel for specific trading advice to meet your trading preferences. These materials represent the opinions and viewpoints of the author, and do not necessarily reflect the viewpoints and trading strategies employed by Topflight Grain Cooperative, Inc.
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8 hours ago
Thursday, May 13, 2021
Closing Markets: Corn -40 Old & -35 New. Beans -58 Old & -47 New. Wheat -28.
Market Recap:
Corn was sharply lower with CN down the 40-cent daily trading limit. CU shed 38 ½ cents and CZ settled 34 ¾ cents in the red. The corn market has become heavily overbought over the past three weeks and was ripe for a correction to the downside. This morning’s export sales report was bearish to old crop corn as net cancelations of 4.5 million bu. of 2020/21 corn were reported. China canceled 13.2 million bu. of current year purchases and there were another 7.6 million bu. cancelled by unknown. Argentina offers are currently well below those from the U.S. Gulf. This has sharply curtailed interest in U.S. supplies, although it does appear likely that 2020/21 exports will reach the USDA’s 2.775 billion bu. projection, as sales currently total 2.667 billion bu. with 16 weeks remaining in the marketing year. Although China cancelled a relatively small quantity of old crop purchases, it continued its recent buying of 2021/22 U.S. corn. Another 680,000 MTs of new crop sales to China were flashed this morning, bringing total Chinese new crop purchases since last Friday to 3.74 MMTs (147 million bu.). New crop corn sales in this morning’s report were a healthy 82 million bu. The recent Chinese purchases have pushed total new crop corn sales to the highest level ever for early May. Planting is beginning to resume in the eastern Midwest following last weekend’s rains. The break in the weather looks short lived as more rain is expected over the upcoming weekend.
Soybeans were sharply lower today on a wave of profit taking. SN was 58 ½ cents lower; SQ fell 50 ¼ cents, and SX was down 47 ¼ cents. Soybeans were pressured by spillover weakness from sharply lower corn futures and by heavy commodity fund selling, with funds sellers of an estimated 25,000 soybean contracts. Like corn, soybeans had become overbought during the impressive rally of the past 5 to 6 weeks. The weekly export sales report was a non-event for beans. Sales were on the low side, as expected, with just 3.5 million bu. of old crop sales reported for the week ended May 6th along with 3.8 million bu. of new crop sales. Planting of soybeans in parts of the eastern Midwest has resumed, but rains are forecast to return this weekend.
Funds Daily
C +353,000 (-40,000); S +149,000 (-25,000); W -25,000 (-10,000); SM +45,000 (-14,000); BO +64,000 (-6,000)
Have a great evening!!!!
Chelsey White
Emery Manager & Originator:: Topflight Grain Cooperative, Inc.
593 Emery Rd :: Maroa, IL 61756
Phone:: 217-794-2240
E-Mail:: cwhite@tfgrain.com
Web:: www.topflightgrain.com
This material should be construed as market commentary, merely observing economic, political and/or market conditions, and not intended to refer to any trading strategy, promotional element or quality of service provided by Topflight Grain Cooperative, Inc. Topflight Grain is not responsible for any redistribution of this material by third parties, or any trading decisions taken by persons not intended to view this material. Information contained herein was obtained from sources believed to be reliable but is not guaranteed as to its accuracy. Contact Topflight Grains designated personnel for specific trading advice to meet your trading preferences. These materials represent the opinions and viewpoints of the author, and do not necessarily reflect the viewpoints and trading strategies employed by Topflight Grain Cooperative, Inc.
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1 day ago
