Crude Oil and Equities Will Pull on Grains
A lower to sharply lower start is likely this am, similar to overnight losses: 10-15 in wheat and corn, 20-25 in beans. Crude oil and equities are sharply lower, sending a strong bearish signal to the grains. The $ index is lower, which is supportive for the grains, but not enough to offset the crude oil and equities bearishness.
The USDA announced this am China bought 116,000 tonnes of US beans, the second day in a row China took US beans. There is talk China bought as much as 450,000 tonnes of mostly US origin beans Tuesday and the announcements of these last two mornings suggest this talk is correct with more announcements possible.
Bunge put out 397 of the 834 oil deliveries this am, which could weigh on the nearby oil spread. Only 138 wheat and 96 corn were delivered this am.
Informa will put out revised acreage estimates for next year at 10:30am US Central time today. Farm Futures magazine released a survey which shows farmers plan to plant 85.1 million acres of corn next spring vs 85.9 million this year. The survey showed bean acreage of 80.1 million acres, up sharply from the 75.9 million planted this year. Wheat acreage was estimated at 61.7 million acres, down 2.2% from this year. Corn export sales were better than expected yesterday in the weekly export sales report but they remain 48% lower than last year at this time with the USDA expecting only a 26% year over year decline.
Energy Secretary designate Steven Chu could differ from President Elect Obama in their views on bio fuels: Chu favors next generation cellulosic ethanol rather than corn-based ethanol. He has a reputation as a staunch opponet of the use of food products to make biofuels and said at a conference last spring that corn was the wrong crop for bio-fuels.
There is talk in Australia of more wheat quality losses from ongoing wet weather and harvest delays. More rain is likely today in some Australian wheat areas, where it is most unwelcome. Argentina will see only light, scattered rain today in the south with dry weather everywhere else. This dry pattern will continue across the country this weekend through Tuesday. Light rain is forecast Wednesday but more hot and dry conditions are predicted Thur-Sun next week, stressing corn and beans. Brazil saw up to 1" of welcome rain in the north yesterday with dry weather in the south. The same pattern is forecast today through Wednesday with the south remaining dry all next week, increasing concern for corn and beans there.
The USDA announced this am China bought 116,000 tonnes of US beans, the second day in a row China took US beans. There is talk China bought as much as 450,000 tonnes of mostly US origin beans Tuesday and the announcements of these last two mornings suggest this talk is correct with more announcements possible.
Bunge put out 397 of the 834 oil deliveries this am, which could weigh on the nearby oil spread. Only 138 wheat and 96 corn were delivered this am.
Informa will put out revised acreage estimates for next year at 10:30am US Central time today. Farm Futures magazine released a survey which shows farmers plan to plant 85.1 million acres of corn next spring vs 85.9 million this year. The survey showed bean acreage of 80.1 million acres, up sharply from the 75.9 million planted this year. Wheat acreage was estimated at 61.7 million acres, down 2.2% from this year. Corn export sales were better than expected yesterday in the weekly export sales report but they remain 48% lower than last year at this time with the USDA expecting only a 26% year over year decline.
Energy Secretary designate Steven Chu could differ from President Elect Obama in their views on bio fuels: Chu favors next generation cellulosic ethanol rather than corn-based ethanol. He has a reputation as a staunch opponet of the use of food products to make biofuels and said at a conference last spring that corn was the wrong crop for bio-fuels.
There is talk in Australia of more wheat quality losses from ongoing wet weather and harvest delays. More rain is likely today in some Australian wheat areas, where it is most unwelcome. Argentina will see only light, scattered rain today in the south with dry weather everywhere else. This dry pattern will continue across the country this weekend through Tuesday. Light rain is forecast Wednesday but more hot and dry conditions are predicted Thur-Sun next week, stressing corn and beans. Brazil saw up to 1" of welcome rain in the north yesterday with dry weather in the south. The same pattern is forecast today through Wednesday with the south remaining dry all next week, increasing concern for corn and beans there.
posted by InsightPublishing at
8:59 AM
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