4/29/14 Market Summary Corn May up 14 today as end of month fund buying estimated at 5000 contracts came at the market coupled with bullish reports from the HRW tour in Kansas. Today’s close was the highest in July corn since last August. Beans Nearby beans closed higher for the 4th straight session. May futures finished up 15 ¾ at 1524, which is the highest “closing price” in the life of the contract and only 7 cents off the contract high. New crop Nov closed up 8 ¾ at 1248, which is the contracts highest close since July 2013. Funds bought an estimated 6,000 contracts of beans & 3,000 contracts of meal. Strong demand & tight cash markets continue to drive futures higher. Tomorrow is First Notice Day for May futures. Given the tight domestic supplies, the trade is not expecting any meaningful deliveries in beans & meal. Wheat Wheat futures continued their upward trend on the recurring set of bullish fundamentals- US HRW weather and Black Sea political uncertainty. For all the negative outlook surrounding the Ukrainian/Russian standoff, there have been few reports of significant issues with spring planting or logistics. May 25th will be a key date to monitor as thoughts (hopes?) are that once a Ukrainian president is elected and officially recognized in the global community, Putin will have a difficult time with any aggressive stance. Rains moved across Europe and into Russia. Chinese wheat growing areas received beneficial moisture and Western Australia now has moisture as planting begins. Argentina released the last 500Kmt of wheat from their 1.5 MMT indicated sale. Some in the trade would not be surprised to see additional sales as new crop supplies are collected. KS wheat tour kicked off their first day of wheat evaluations across Kansas. Early reports should be the best wheat the tour records as conditions decline rapidly moving West. Some of the first comments were rather optimistic, but they did come from areas that had weekend rainfall and at this growth stage are only able to evaluate tiller counts. Sustained winds over 40mph and dry conditions causing dust storms across the western ½ of the HRW Wheat Belt. Adding to the production gloom and doom are reports that HRW planted in the upper Midwest will be torn up and planted to corn.
Posted on: Wed, 30 Apr 2014 12:49:32 +0000
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