January 7, 2016

Corn

CBOT Prices Two Rivers Cash Bid Prices
Mar ‘16 353’0 -0’2 Jan ‘16 324’0 Unch.
May ‘16 358’4 Unch. Feb ‘16 326’0 Unch.
Jul ‘16 364’4 Unch. Mar ‘16 326’0 Unch.
Sep ‘16 370’2 +0’4 Apr ‘16 331’0 Unch.

 

Soybeans

CBOT Prices Two Rivers Cash Bid Prices
Jan ‘16 877’0 +1’2 Jan ‘16 814’0 -1’0
Mar ‘16 864’4 -0’2 Feb ‘16 810’0 Unch.
May ‘16 867’2 -0’2 Mar ‘16 811’0 Unch.
Jul ‘16 873’6 -0’6      

 

The markets were feeling the shockwaves early as the sky seemed to be falling throughout China.

China’s circuit breaker was in effect today (2nd time this week) just 30 minutes into trading.

Trading rules have changed as China now suspends their 7% circuit breaker rule for tomorrow.

China still has other regulations in place including a 10% loss rule on individual stocks.

In the US, trade is halted after a 7% loss & again @ 13% but suspended for the day after 20%.

The cash market for corn and beans firming a touch as new year farmer selling was disappointing.

Nat gas surging sharply higher following inventory report showing a larger draw than expected.

Weekly exports were poor for corn and wheat @ 10 mb and 2.8 mb, respectively; beans OK @ 23.5.

The USDA also announced the overnight sale of 246 kmt of beans to China for 2015-16 delivery.

YTD bean sales trail LY by 181 mb (USDA forecasting a 128 mb decline); corn trails by 271 mb (USDA -114 mb).

Brazil is currently shipping 3 cargoes of corn to S Africa, some estimating they will need to import 5 mmt.

 

January 7, 2016