Written Commentary
TODAY—WEEKLY ETHANOL STATS—
Overnight trade has SRW Wheat up roughly 2 cents, HRW up 2; HRS Wheat down 2, Corn is down 1 cent; Soybeans down 10; Soymeal down $3.50, and Soyoil down 10 points.
Chinese Ag futures (January) settled up 34 yuan in soybeans, down 7 in Corn, down 43 in Soymeal, up 8 in Soyoil, and down 6 in Palm Oil.
Malaysian palm oil prices were down 34 ringgit at 3,313 (basis February) following weaker U.S. soyoil prices.
South America Weather Forecast: Rainfall looks to continue through much of Brazil with 85 to 90% coverage of up to 1.5”. Argentina remains dry for the rest of the week with a front moving in over the weekend with amounts near the 1” level.
The player sheet had funds net sellers of 5,000 contracts of SRW Wheat; sold 15,000 Corn; sold 7,000 Soybeans; net sold 1,000 lots of Soymeal, and; net sold 4,000 lots of Soyoil.
We estimate Managed Money net short 9,000 contracts of SRW Wheat; long 246,000 Corn; net long 180,000 Soybeans; net long 64,000 lots of Soymeal, and; long 100,000 Soyoil.
Preliminary Open Interest saw SRW Wheat futures down roughly 7,000 contracts; HRW Wheat down 1,300; Corn down 550; Soybeans down 4,500 contracts; Soymeal up 1,800 lots, and; Soyoil down 80.
Deliveries were ZERO Soymeal; 100 Soyoil; ZERO Corn; 5 HRW Wheat; 241 Oats; 110 SRW Wheat, and; ZERO HRS Wheat.
There were changes in registrations (Soyoil down 66)—Registrations total 209 contracts for SRW Wheat; 240 Oats; Corn 1; Soybeans 175; Soyoil 1,592 lots; Soymeal 193; Rice 313; HRW Wheat 113, and; HRS 1,195.
Tender Activity— Egypt bought 170,000t Russian, Ukraine wheat—S. Korea bought 65,000t optional-origin corn—Thailand bought 54,000t optional feed wheat—Vietnam seeks 68,000t optional soymeal—
- USDA SAYS 432.7 MILLION BUSHELS OF CORN USED FOR FUEL ALCOHOL IN OCTOBER, DOWN FROM 439.1 MILLION A YEAR AGO
- USDA SAYS 1.801 MILLION TONS OF DDGS PRODUCED IN OCTOBER, DOWN FROM 1.872 MILLION A YEAR AGO
- USDA SAYS 5.9 MILLION TONS (197 MILLION BUSHELS) OF U.S. SOYBEANS CRUSHED IN OCTOBER
China has started importing Indian rice for the first time in at least three decades due to tightening supplies and an offer from India of sharply discounted prices, Indian industry officials told Reuters.
- BRAZIL 2020/2021 SOYBEAN CROP SEEN AT 134.98 MILLION TNS VERSUS 134.44 MILLION TNS IN PREVIOUS FORECAST – DATAGRO
- BRAZIL 2020/2021 TOTAL CORN CROP SEEN AT 114.04 MILLION TNS VERSUS 114.48 MILLION TNS IN PREVIOUS FORECAST – DATAGRO
Euronext wheat extended losses on Tuesday to the lowest in nearly four weeks as futures saw more chart-based selling, while physical markets in Europe held firm as brisk export demand absorbed more of a dwindling harvest surplus.
March milling wheat on Euronext was down 2.00 euros, or 1.0%, at 205.00 euros ($246.86) a tonne by 1715 GMT. It touched its lowest since Nov. 4 at 204.50 euros, adding to losses on Monday when it struck a three-week low.
Prices of key varieties of Australian wheat being offered in Asia were largely unchanged even though the country lifted its production estimate with strong demand underpinning the market.
Australian farmers are on track to harvest their second-biggest-ever wheat crop after years of drought, as the country’s chief forecaster raised its production estimate on Tuesday by nearly 10% to more than 30 million tonnes because of favorable wet weather conditions.
Indonesian biodiesel consumption in 2020 will be 13% lower than its initial target, a senior energy ministry official told a webinar.
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