Apr 24, 2014
Home| Tools| Blogs| Discussions| Sign UpLogin


Cash Grain Insights

RSS By: Kevin McNew, AgWeb.com

Kevin McNew is President of Grain Hedge and Geograin. McNew was raised on a farm in central Oklahoma and received his bachelor’s degree from Oklahoma State University, and master’s and Ph.D. degrees in Economics from North Carolina State University. For over a decade, he was a Professor of Economics at the University of Maryland and Montana State University, focusing on commodity markets. He has received numerous academic awards for his research and outreach work, and was (and still is) widely regarded for boiling down complex economic issues into easy-to-understand concepts for applied life.

 

Beans Get Spooked By China

Dec 13, 2013

 Grains continued to selloff in the overnight session with soybeans once again posting the biggest losses giving up 5 cents following Thursday’s 20-cent slide. Corn and wheat were down 3 cents in night trading.

A strong weekly export sales report on Thursday morning was muted by concerns over China potentially cancelling US bean business following more cancelled corn cargoes. Although it is speculative at this point in time, with a looming record crop from South America on the horizon, it could be a possibility that China will play the GMO card to keep prices in check. Domestically, soybean deliveries to crushing facilities continue to be strong with dump lines at several key plants in the WCB reported to have 3 or more hours of wait time. Not surprising, basis levels at crush plants on the whole have been weaker in recent days, while river elevators continue to bolster strong premiums for immediate shipments.

2013 12 13

In South America, recent showers in Argentina's farm belt helped growers seed their 2013/14 soybean crop on what is expected to be a record 20.45 million hectares, the Buenos Aires Grains Exchange said on Thursday. Western areas of the Pampas agricultural belt that had been in need of moisture received rain earlier this week and farmers there are reported to be 66% planted, up 8% over the last week.

In corn, a bill introduced by Senator Diane Feinstein calls to eliminate the corn ethanol mandate by the EPA. Ethanol experts said the EPA's proposed cuts, and backing for ethanol among many lawmakers, discounts chances that the bill would move forward anytime soon. Traders expect China to continue their strict checks for an unapproved strain of GMO corn into early next year as Beijing seeks to curb cheap imports and support domestic corn prices. Trade flows are being disrupted as exported look to move cargoes to countries that will not turn them away.

For wheat, price continue to be pressured by sluggish US export sales and more pressure from India who is reported to be putting 2 MMT of supplies on the world market in coming months.

 

Log In or Sign Up to comment

COMMENTS

No comments have been posted, be the first one to comment.

Receive the latest news, information and commentary customized for you. Sign up to receive Top Producer's eNewsletter today!

 
 
The Home Page of Agriculture
© 2014 Farm Journal, Inc. All Rights Reserved|Web site design and development by AmericanEagle.com|Site Map|Privacy Policy|Terms & Conditions