now available (through 8/31/15) on corn and beans delivered out of your bins on space available basis. Call your local elevator for details . GRAIN DELIVERIES TO DILLSBURG are limited due to construction. Please call Shane Drayer at 217 280-0851 or Frank Sylvester 217 369-1531 for details.
PLEASE BE AWARE: Premier is not accepting Duracade® corn grown in 2014.
Grains The grain markets were on the defensive to start the week. Wheat led the charge lower on weekend rains in the Plains and some technical selling. The Russian government proposed to cancel the existing wheat export tax that is scheduled to expire at the end of June. No decision will be made until sometime in May or June as they will have a better assessment of their winter wheat crop and better control over domestic prices. With the big drop in wheat futures this week, Egypt’s GASC issued a new tender on Friday. They want to buy 60,000 MT of U.S. white, U.S. SRW, Ukraine, or Russian wheat. They are also looking for 60,000 MT of other origin soft or milling wheat. Significant rains have fallen in the southern plains with localized areas receiving as much as seven inches of precipitation. The extended forecast has additional rain events. Wheat exports were the lowest of the marketing year and the pace is falling way behind to meet the USDA export figure. May wheat futures closed at 494.50 which is down 32 cents on the week.
China announced that their March soybean imports were just 4.49 MMT, which is up 5.4% from February but about 3.0% lower than last year. The USDA is projecting Chinese soybean imports at 74.0 MMT. Exports were overall pretty good and I think that we will meet the export figure pretty easily. Chinese crush margins have weakened in the past month from a high of around $40 to the current level around $20/ton. Large South American soybean supplies continue to pressure the market, with a higher crop estimate out of Argentina a bearish factor. Argentina's Rosario Grain Exchange has raised its estimate of the soybean crop by another 1 MMT to 59 MMT, 2 MMT above USDA's current estimate. Most analysts are now looking to increase their South American production estimates. May soybean futures closed at 968.75 which is a gain of 17.25 for the week.
Corn futures open interest continues to rise. Open interest has topped 1.4 million contracts for the first time in 10 months and is just slightly below the year-ago level. The spec short position grew substantially this week from 39,000 to 87,000 contracts. Corn planting was reported at only 2% in the first report of the season. Expectations are for corn planting to be in the 10-15% range. The Avian flu virus is spreading. In the last week, 20 new cases of H5N2 have been confirmed. Over 2.5 million turkeys and chickens have already been killed. May corn futures closed at 379.75 which is a gain of 2.75 cents for the week.
Livestock Packer margins for cattle have rebounded quite a bit and are now around $10 positive. Futures were able to recapture most of last Friday’s washout throughout the week. Lower cash trade caused the futures market to go limit down on Friday. The discount of futures to the cash is still over $10. Slaughter has slowed down in an attempt to raise the cutout value. Energy Crude oil inventories continue to build. This week crude stocks increased by 1.3 million barrels to another record of 483.7 million barrels. Saudi Arabia increased crude production by 658,000 barrels per day. This increased occurred over the past month and is the same amount of production that it took the Bakken almost 3 years to accomplish. The Baker Hughes rig count was down again this week, falling by 26 to 734. This is the 19th straight week of declines and the lowest number since November of 2010. Energies posted solid gains this week with crude futures up almost 8%, gasoline up 7%, and natural gas 5%.
Financials U.S. equities were hit with their biggest losses in over a month. Missed earnings by some major companies like American Express, Honeywell and GE weighed on the market. Investors are also very nervous over rising concerns about Greece and whether it will strike a deal with other EU countries regarding its debt. U.S. economic data continues to be mixed. Without seeing an improvement in several key economic components, many analysts are thinking a rate cut may be pushed back from the initially expected June timeframe.
The information contained in this report is believed to be reliable but is not guaranteed to accuracy or completeness by Premier Cooperative, Inc. This report is provided for information purposes only and is not furnished for the purpose of, nor intended to be relied upon for specific trading in commodities here in.
The future prices and elevator bids on this web site are delayed. For the current bids please check with your local elevator.
Premier Cooperative's bids are alway subject to change without notice from this web site.