Higher Crude and Equities Support Higher Start In Grains
A higher start is expected across the floor, roughly 5-8 wheat, 5 corn and 10-15 beans. Crude oil and equities are higher while the $ is mixed, providing support for a higher grain market to start.
Reports from Argentina indicate the talks between the government and the farmers unions went well with Argentine President Fernandez participating briefly. More talks are set for next week although the farm union leaders say the conflict with the government isn't over yet. Just the fact the two sides say some progress was made and more talks are scheduled could defuse this situation, at least until next week's talks. This would be bearish for our market, especially nearby beans.
Nearby beans were very strong yesterday due to worries over possible supply disruptions from Argentina but that fear has lessened this morning. Traders will continue to pay close attention to any news out of Argentina regarding this situation as it could still change quickly either way and strongly influence our market, especially beans, as we saw yesterday.
There is talk China bought 3 cargoes (about 165,000 tonnes) of US beans. Deliveries were 3200 wheat, 1600 corn, 1 meal and 1000 oil with no beans delivered yet. Dreyfus stopped corn for the 3rd day in a row, taking 200. Bunge, as we suspected after they bear spread 400 May/March corn yesterday, put out 442 on delivery this morning. Keep watching the outside markets for direction in the grains today.
Brazil was dry yesterday but light, welcome rain is forecast in the south the next several days. The north will stay dry the next few days, helping speed up harvesting of corn and beans. Argentina saw very good rains over the last 24 hours, up to 2.5". Mostly dry weather will be in place tomorrow through Monday.
There is little rain in sight for the dry areas of the US southwest winter wheat belt the next week or longer. Temps are forecast to remain well above normal and much of the crop is already out of dormancy, meaning its moisture needs have increased sharply. The 6-10 day outlook calls for cooler temps but continued below normal precipitation, which will continue stressing the crop. -- Vic Lespinasse
Vic Lespinasse in the Media~
Chicago's ABC Channel 7 features Vic Lespinasse in yesterday's 5:00 News. Watch the streaming video here
Reports from Argentina indicate the talks between the government and the farmers unions went well with Argentine President Fernandez participating briefly. More talks are set for next week although the farm union leaders say the conflict with the government isn't over yet. Just the fact the two sides say some progress was made and more talks are scheduled could defuse this situation, at least until next week's talks. This would be bearish for our market, especially nearby beans.
Nearby beans were very strong yesterday due to worries over possible supply disruptions from Argentina but that fear has lessened this morning. Traders will continue to pay close attention to any news out of Argentina regarding this situation as it could still change quickly either way and strongly influence our market, especially beans, as we saw yesterday.
There is talk China bought 3 cargoes (about 165,000 tonnes) of US beans. Deliveries were 3200 wheat, 1600 corn, 1 meal and 1000 oil with no beans delivered yet. Dreyfus stopped corn for the 3rd day in a row, taking 200. Bunge, as we suspected after they bear spread 400 May/March corn yesterday, put out 442 on delivery this morning. Keep watching the outside markets for direction in the grains today.
Brazil was dry yesterday but light, welcome rain is forecast in the south the next several days. The north will stay dry the next few days, helping speed up harvesting of corn and beans. Argentina saw very good rains over the last 24 hours, up to 2.5". Mostly dry weather will be in place tomorrow through Monday.
There is little rain in sight for the dry areas of the US southwest winter wheat belt the next week or longer. Temps are forecast to remain well above normal and much of the crop is already out of dormancy, meaning its moisture needs have increased sharply. The 6-10 day outlook calls for cooler temps but continued below normal precipitation, which will continue stressing the crop. -- Vic Lespinasse
Vic Lespinasse in the Media~
Chicago's ABC Channel 7 features Vic Lespinasse in yesterday's 5:00 News. Watch the streaming video here
posted by InsightPublishing at
8:38 AM
0 Comments:
Post a Comment
<< Home