Wheat prices overnight are up roughly 1 cent in the SRW, unchanged in HRW, and down 1 for Spring; Corn is up 1 cent; Soybeans up 1; Soymeal up $0.50, and; Soyoil down 5 points.
For the week, Winter Wheat prices are up roughly 4 cents for SRW, up 2 in the HRW, and up 3 for HRS; Corn is down 2 cents; Soybeans down 20 cents; Soymeal down $9.00, and; Soyoil down 55 points (March crushing margins are down roughly 6 cents around $1.02).
Chinese Ag futures (May) settled down 20 yuan in Soybeans, down 2 in Corn, down 18 in Soymeal, down 40 in Soyoil, and down 56 in Palm Oil. The Malaysian Palm Oil market was down 22 ringgit at 2,545, basis March, in line with weaker other vegoils and a stronger ringgit.
The South American weather forecast had no major changes as a front will bring rains to most of Argentina in the next 2-3 days then quieting down in most of Argentina for the rest of the next 10 days------good rains are seen for all of Brazil over the next 5 days and continue through the 6 to 10 day period.
In deliveries, Soymeal totaled 47 lots; Soyoil 46, and; Soybeans 63 contracts (today is last trading day and as of yesterday’s close, there were 61 lots of Jan Soymeal still open, 46 Soyoil, and 112 Soybeans).
The player sheet had funds net buyers of 2,000 contracts of SRW Wheat; net sold 1,000 Corn; sold 5,000 contracts of Soybeans; net sold 4,000 lots of Soymeal, and; and net sold 4,000 Soyoil.
We estimate Managed Money net short 124,000 contracts of SRW Wheat; net short 213,000 Corn; net short 105,000 contracts of Soybeans; net long 15,000 lots of Soymeal, and; net short 2,000 lots of Soyoil.
Preliminary Open Interest saw SRW Wheat Futures up roughly 1,000 contracts; HRW Wheat down 4,100; Corn up 13,600; Soybeans up 12,500 contracts; Soymeal down 165 lots, and; Soyoil up 2,400 lots.
There were no changes in registrations-----Registrations total 289 contracts for SRW Wheat; 101 Oats; Corn 724; Soybeans 807; Soyoil 1,825 lots; Soymeal 300; Rice 1,513; HRW Wheat 468, and; HRS Wheat 1,289 contracts.
TODAY------USDA REPORTS (WHEAT SEEDINGS, PRODUCTION, QTR STOCKS, S/D)------LAST TRADING DAY FOR JAN FUTURES-----COMMITMENT OF TRADERS REPORT--------
In tender activity-------S. Korea bought 70,000t optional-origin corn-----S. Korea bought 12,000t optional-origin palm meal and 12,000t copra meal----
For the week ended January 4th, U.S. All Wheat sales are running 8% behind a year ago, shipments 7% behind with the USDA forecasting an 8% decline on the year. Corn sales 25% behind a year ago, shipments 32% behind with the USDA forecasting a 16% decline on the year. Soybean sales are running 15% behind, shipments 14% behind with the USDA forecasting a 2% increase on the year, Soymeal sales are running 10% ahead of a year ago, shipments 8% ahead with a 5% increase forecasted. Soyoil sales are running 42% behind a year ago, shipments 39% behind with a 26% decrease forecasted
Trade groups representing agricultural cooperatives and grain traders say they're working together with Senate officials on a "solution" to a provision in the new tax law--a new deduction system for farmers that gives cooperatives a competitive advantage over independent grain companies.
U.S. farmers who sought to boost revenues by planting corn used to make tortillas may be forced sell their crops at a loss to makers of ethanol or animal feed because of a glut of what typically is a human food-grade product; oversupply of the most common grains such as corn and soybeans has spread to niche markets because so many farmers have switched to planting different strains of seed to diversify and bolster returns after four years of bumper crops cut farm income and pushed down prices for staple grains; white corn, which makes up roughly 1 percent of the 14.6 billion-bushel U.S. corn harvest, can command a premium of as much as $1 per bushel over the commoditized yellow strain; but premiums have shriveled to four-year lows - to as little as 5 cents above Chicago Board of Trade corn futures.
Wire story report at a time when people around the world are eating more meat, poultry and dairy products than ever before, American farmers may be losing ground to Brazil in the race to feed all those animals; U.S. exports of feed crops already were expected to drop last year as producers in South America and Europe expanded sales; but after some lousy weather in the Midwest last year, the harvest yielded soybeans with less protein; at 34.1 percent per bushel, the protein content was tied for 2008 as the lowest since it was first measured in 1986, government data show; while U.S. exporters often have to contend with Brazilian soy that is higher in protein -- at around 37 percent -- the widening quality gap could mean further erosion of demand from places like China; Brazil's share of the export market is expected to rise to a record 43 percent this season as the U.S. share falls to 39.7 percent -- even as global demand rises for a ninth straight year, according to the U.S. Department of Agriculture.
CME Lowers Margins for Soybean, Soybean Meal
China lifted its forecast for 2017/18 corn imports by 200,000 tons to 1.2 million tons, the Ministry of Agriculture said in a monthly report, as a rally in domestic prices encouraged buyers to seek cheap imports; China's corn ending stocks for the 2017/18 crop year that ends in September were seen at a deficit of 4.37 million tons, versus the previous forecast last month of a deficit of 4.57 million tons
-----China cut its forecast for 2017/18 soybean acreage to 8.1 million hectares (20 million acres), down by 95,000 hectares
-----China's soy oil imports for 2017/18 were seen at 300,000 tons, down 350,000 tons from last month's forecast, as rising soybean imports have resulted in higher domestic output of the oil
Chinese imports of soybeans jumped to the second-highest volume on record in December, according to customs data, boosted by strong demand in the run-up to next month's Lunar New Year holiday and healthy crushing margins
-----December imports came in at 9.55 million tons, up 10 percent from the month before and up 6 percent from December 2016
-----China's imports of the oilseed for all of 2017 hit an annual record of 95.54 million tons, up 13.9 percent from last year's 83.91 million tons
-----China’s edible oil imports for the month of December totaled 610,000t vs 540,000t a month ago and 760,000t last year; YTD imports 5.8 mt, up 4.4%
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