Kevin McNew and Cody Bills
The Grain Hedge Team provides a macro-focused daily view of the world’s grain markets. Kevin McNew, President of Grain Hedge and GeoGrain, received a bachelor’s degree from Oklahoma State University and his master’s and Ph.D. degrees in Economics from North Carolina State University. He spent 10 years as a Professor of Economics with the University of Maryland and Montana State University focusing on commodity markets and is widely regarded for his ability to boil-down complex economic situations into easy-to-understand concepts for applied life. Cody Bills received his Business Administration degree, concentrating on finance, from the University of Vermont. Beginning his career as an analyst for a local investment firm, Cody’s insight and understanding of the grain markets has led to national publication as well as an invitation to host Grain TV daily and be a regular guest on AgWeb Radio.
Grains Start Week in the Red
Mar 25, 2013
Grain markets were lower overnight as traders look for increased supplies in the coming USDA report on Thursday. Overnight, nearby May soybeans were off 6 cents a bushel, while wheat and corn were off 1-cent a bushel.
On Friday, Informa projected US corn acreage at 97.753 million, which would be the highest level in 77 years and up from 97.2 million last year. Friday also brought news of poor feeder cattle numbers as USDA’s Cattle on Feed report showed February’s cattle placements were off 13.5% compared to last February and the lowest on record since the series began in 1996. Export business continues to be non-existent for the US as overnight a private buyer in the United Arab Emirates purchased 40,000 MT of corn likely to be sourced from South America.
In wheat there was notable global business overnight but yet again US exporters fell short. Australia was the lowest bidder for an Iraqi wheat tender of a minimum 50,000 MT, while India came in as the lowest bidder on a Bangladesh tender for 50,000 MT. Snow and rain continue to pass through large areas of the Plains and Midwest helping to improve soil moisture conditions there. The Southern Plains received about a 0.50 inch of moisture over the weekend with more expected later in the week.
For soybeans, China continues to be absent from the US bean market which has put bean prices on the defensive. Informa forecasted US soybean plantings at a record 78.457 million acres, versus last year’s final plantings of 77.2 million.