Today future

Ag Market Commentary

BRUG – Wed Jan 20, 12:36PM CST

Corn futures are trading steady to fractionally higher at midday of midweek, following a slightly higher trade on Tuesday. Last night, nearby Mar16 posted its highest close since Dec 21. Crude oil has not provided any help to commodities this morning, dropping below $27/barrel, a decline of 6.5% on the day. The DJIA is also sharply lower, down 470 points. Consultant Informa put its 2016 corn acreage at 88.87 million acres, down 57,000 acres from its previous estimate (USDA 2015 was 88.0 mil ac). The latest export prices published by the International Grains Council show that US offers are currently $5/ton more higher than Argentinean offers, at $170/ton. Private exporters reported to the USDA that 243,100 MT of US corn was sold to Mexico this morning for 2015/16 delivery.

Mar 16 Corn is at $3.67 3/4, unch,
May 16 Corn is at $3.72 1/2, up 1/2 cent,
Jul 16 Corn is at $3.77 1/2, up 1/2 cent
Sep 16 Corn is at $3.82, up 1/4 cent

Soybean futures are currently trading mostly from 9 to 12 cents lower after closing around 4 cents higher on Tuesday. Now-front month Mar16 beans closed at its highest price since Dec 22 on Tuesday. Informa projected US producers will plant 85.23 million acres to soybeans in 2016, which would be a record and was up 693,000 acres from the previous Informa estimate (USDA 2015: 82.7 million acres). The National Grain and Oils Information Centre in China is expecting the country to import 85 MMT of soybeans this year (USDA: 80.50 MMT), which would be a 9% increase year over year. US export prices as of Jan 19 were offered at $356/ton, up $7/ton from Argentinean offers, and $17/ton higher than that of Brazil.

Mar 16 Soybeans are at $8.71 1/2, down 12 cents,
May 16 Soybeans are at $8.72, down 11 cents,
Jul 16 Soybeans are at $8.77 1/2, down 10 1/2 cents,
Aug 16 Soybeans are at $8.78 3/4, down 9 1/4 cents,
Mar 16 Soybean Meal is at $269.60, down $1.70,
Mar 16 Soybean Oil is at $29.64, down $0.39

Wheat futures are trading from 1 to 6 cents lower in most contracts at midday, after closing with fractional gains in CHI on Tuesday afternoon. KC and MPLS contracts were lower. Consultant Informa estimates that 51.1 million acres will be planted to wheat for the 2016 growing season. That would be a year/year decrease from the 2015 USDA figure of 54.6 million acres. Japan is tendering for 102,400 MT of US wheat, with the tender to close tomorrow. Latest wheat export prices from the IGC have US SRW offers at $200/ton, $25/ton higher than French offers. Russia will begin exporting wheat to China, just one month after the Asian country lifted its ban on Russian wheat imports. Snow is projected for parts of Russian and Ukrainian wheat growing areas, providing some protection from winterkill.

Mar 16 CBOT Wheat is at $4.70, down 4 1/2 cents,
Mar 16 KCBT Wheat is at $4.66 3/4, down 6 cents,
Mar 16 MGEX Wheat is at $4.95 1/4, down 1 cent

 

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