Corn futures finished the day with gains of 1 to 3 cents across the board. The Rogers Index fund is rolling out of September futures to December today and tomorrow. The Sept/Dec spread widened for the second day in a row to finish at $0.20. Cash markets also added support with reports of ethanol bids surfacing. Weekly export sales due out tomorrow morning are expected to come in near 100-200,000 MT for old crop, and 300-400,000 MT for new crop. This is in comparison to the previous week which showed net reductions of 27,900 MT for old crop, and net sales of 515,900 MT for new crop. Earlier this morning, South Korea’s NOFI group cancelled their most recent tender for 70,000 MT of Corn for January 25th delivery. According to EIA data, ethanol production averaged 832,000 barrels per day (b/d) — or 34.94 million gallons daily. That is down 21,000 b/d from the week before and the lowest in 16 weeks. The four-week average for ethanol production stood at 861,000 b/d for an annualized rate of 13.12 billion gallons. Stocks of ethanol stood at 16.5 million barrels. That is a 4.7% decrease from last week and bull friendly. Imports of ethanol were 13,000 b/d, down significantly from last week. Year-to-date imports stood at 175.7 million gallons according to EIA weekly data. EPA expects 666 million gallons of imports will be needed to meet the 2013 advanced biofuel standard.
|Sep 13 Corn closed at $4.99, up 3 1/2 cents,|
|Dec 13 Corn closed at $4.79, up 1 1/2 cents,|
|Mar 14 Corn closed at $4.91 1/2, up 1 1/4 cents|
|May 14 Corn closed at $4.99 1/4, up 1 1/4 cents|
Soybeans closed the day 3 to 24 cents higher, with the August contract notching impressive double digit gains. Concerns of tight old crop supplies still linger and helped to support the front end of the board. After narrowing to $1.2025 late last week, the August 13/Nov 13 spread has widened back out to $1.6775. Weekly export sales due out tomorrow are expected to come in near 450-600,000 MT for new crop beans. This is in comparison to 665,200 MT the previous week. As we head into the pod fill stage, weather forecasts remain favorable. Earlier this morning, private exporters reported to the USDA export sales of 120,000 MT to an unknown destination for the 2013/14 marketing year.
|Aug 13 Soybeans closed at $13.74, up 24 cents,|
|Sep 13 Soybeans closed at $12.49 3/4, up 3/4 cent,|
|Nov 13 Soybeans closed at $12.06 1/4, up 3 1/4 cents,|
|Jan 14 Soybeans closed at $12.11, up 3 cents,|
|Aug 13 Soybean Meal closed at $435.10, up $5.90,|
|Aug 13 Soybean Oil closed at $42.09, down $0.02|
Wheat futures closed the day with moderate gains, with the Kansas City contract leading the way up 10 cents. Weekly export sales released tomorrow morning are expected to be between 400-500,000 MT. This is in comparison to 661,400 MT the previous week. The Chicago Wheat Dec13/Corn Dec13 continued to edge higher, adding another 9 cents to finish at $1.9800. Egypt’s GASC bought 240,000 MT of Romanian and Ukrainian Wheat for the delivery period Sept 11th to Sept 20th. This compares to the low made on June 27th which was $1.5275. The Wheat trade has been under the influence of bullish export news which has helped to stabilize the market amid declining Corn prices. This is tied to the expected 5 year low in world ending stocks in 2014. Bears will counter that supplies in major exporter countries are up despite the overall decline. Brazil import demand is also deemed supportive.
|Sep 13 CBOT Wheat closed at $6.64 1/4, up 9 cents,|
|Sep 13 KCBT Wheat closed at $7.06 3/4, up 10 1/2 cents,|
|Sep 13 MGEX Wheat closed at $7.41 1/4, up 4 cents|