3/14/2017 7:24:43 AM
- Saudi Arabia raised its oil output back above 10 million barrels a day, essentially reversing a third of the cuts it committed to back in January.
- FOMC will start their 2-day meeting today, where an interest rate increase is likely.
- March ’17 futures go off the board today at noon.
- NOPA Crush report out tomorrow at 11:00 am CDT.
- CHS Hedging has two upcoming energy hedging classes: March 16th in Colby, KS, and March 22nd in Champaign, IL. It is not too late to be signed up! You can register for both classes at www.chshedging.com.
- China is still on track to import 3 million tonnes of pork in 2017, on track with last year’s number. China consumes half of the world’s annual production.
- The sixth bird flu outbreak in China occurred at a duck farm. China has culled over 175,000 birds since October in order to combat the outbreaks.
- China corn prices are up 9.9% YTD at 1,670 yuan/ton. An increase in price is due to the ongoing process of adjusting inventory levels by the government.
- Spreads: K/N 7.5¢ carry, K/U 14.75¢ carry and K/Z 22.25¢ carry.
Outlook: Continued choppy trade as we are in a seasonal lull.
- South American weather looks both favorable for harvest progress and crop development for the remaining soybean crop.
- Farmers continue to be disengaged from selling in the US, increasing the size of the export program coming out of Brazil.
- Malaysian palm oil closed up 29 ringgits at 2,752 for May, down 19 for the week.
- Spreads: K/N 10¢ carry, K/Q 11.5¢ carry and K/X 4¢ inverse.
Outlook: Lower today as there is a lack of fresh news and meal is trading lower this morning.
- In the 7-day forecast, winter wheat growing areas remain dry. An increased chance in precipitation for these areas is in the forecast for the end of next week.
- WK pushed 10 cents lower yesterday, along with KWK moving nearly 13 cents lower. Wheat is having a hard time finding support in an oversupplied global market.
- KC Wheat conditions: Kansas 40% G/E vs. 43% last week, Oklahoma 42% G/E vs. 43% last week, Texas 29% G/E vs. 34% last week.
- Spreads: Mpls K/N 7.75¢ carry, Kansas City K/N 12.25¢ carry and Chicago K/N 15.25¢ carry.
Outlook: Lower on a stronger US dollar and limited support.