Good Morning! Paul Georgy with the early morning commentary for February 12, 2016 at 5:00 am.
Grain markets are steady to higher. Outside markets are also higher on short covering ahead of a long weekend.
Nearby soyoil breaks through resistance area setting new highs for the month of February. Product strength is providing support to soybean futures.
Weekly export sales for corn during the period from January 28 to February 4 was only 404,963 metric tonnes. This was the smallest sale in five weeks and was sharply under the 800,000 - 1,100,000 trade expectation. Sales are currently 12% behind the five year average which with the latest USDA revision, they are looking for export to run 5% above the 5 year average.
Soybean sales pace has improved to a level which would suggest that we could over achieve the USDA’s goal by year end.
Current wheat export sales pace if continues through the end of the marketing year would result in 73 million bushel under USDA’s current goal.
South Korea rejects offers to buy 130,000 tonnes of corn due to prices being too high. However their buying interest is expected to pick up after the Lunar New Year celebration ends.
After the grains close today they will reopen on Monday evening at 7:00 pm CT due to Presidents Day Holiday.
The Climate Prediction Center (CPC), an agency of the National Weather Service, in its monthly forecast said most models show the strong El Nino will weaken in the coming months and the chance of La Nina conditions increases into the fall.
(Reuters) - Biofuels manufacturer Green Plains Inc GPRE.O is still seeking acquisitions and organic growth despite weakened margins so far this year, the company's chief executive said on Thursday. The "compressed margin environment gives us the chance to add more processing assets while others may turn away," Todd Becker, President and CEO, said on an investor conference call.
Russian Agriculture Ministry suggests wheat export duty would stay as means of regulating market, could be lowered to close to zero – Interfax.
The U.S. Department of Labor released another installment of weekly jobless claims, and the report showed a much larger drop than expected. Claims in the past week were down to 269,000 from 285,000 the prior week.
(Reuter) - U.S. House of Representatives Speaker Paul Ryan said he does not see enough support to bring the Trans-Pacific Partnership up for a vote in the chamber, adding that the Obama administration must do more to persuade lawmakers to accept the trade deal.
Macro traders are concerned about the reopening of the Chinese stock market on Monday. Hong Kong listed China shares have fallen neat 7 percent this week.
February Lean Hog futures contract goes off the board today. Livestock markets are closed on Monday in observance of President Day.
The livestock markets are being influenced by crude oil and the stock market. Weaker outside markets have weighed on futures prices giving the packers a bias to bid lower for cash cattle. So far this week cash traded at 1333 to 134 however packer bids have been declining therefore setting up a standoff for later today in the country. Product has not yet found a bottom as meat supplies are plentiful. Look for more choppy trade today as traders prepare for long weekend.
Dressed beef values were mixed with choice down 1.17 and select up .65. The CME Feeder Index is 158.79. Pork cutout values are down 1.53.
