Premier Cooperative

January 22, 2020

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01-22-2020

Overnight the Markets traded firmer after yesterday sell off. Wheat shortage, a rail strike in France, and weather problems are bringing the markets back overnight. Currently corn is trading 2-3 higher, Soybeans 3-4 higher, and wheat 6-7 higher. Wheat shortage in the EU, Russia, and Australia are supporting the US wheat market. Traders will be watching the weather in South America and here in the US as well as digesting the Chinese Phase 1 agreement and the USMCA Agreement details . The Markets will also be tuned into the impeachment proceeding this week.

____________ MARKET MOVERS

USDA Weekly EXPORT INSPECTIONS Monday 1-27-2020 @ 10:00 am

USDA Weekly USDA EXPORT SALES Friday 01-24-2020 @ 7:30 am

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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, nor intended to be relied upon for specific trading in commodities here in

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__Wednesday, January 22nd, 2020

  • French grain industry players warned of a severe impact on the cereal sector if ongoing strikes over pension reform that have disrupted the country's rail services and port activities since last month were to last. A month-old public transport strike that has crippled rail services and rolling stoppages by dock workers have left firms in the European Union's biggest grain producer struggling to get their crop to ports and factories. Intercereales, the French organization encompassing grain producers, exporters and processors said in a letter sent to the government on Monday that the situation was now dramatic for grain exports. "The grain industry cannot go without train freight which is particularly adapted to massive grain transport, nor without ports to export nearly 50% of its production," Intercereales said.
  • Algeria’s state grains agency OAIC purchased around 400,000 tons of milling wheat to be sourced from optional origins in an international tender that closed on Tuesday,  First assessments put prices paid at about $245 a ton c&f. Some traders put the price range at between $244 and $246 a ton c&f. Algeria does not disclose the results of its tenders and purchase reports are based on trade assessments. The wheat was sought for shipment in two periods, March 1-15 and March 16-31. But if sourced from South America, shipment is earlier, between Feb. 1-15 and Feb. 16-29. France is expected to supply part of the total bought, traders said. Algeria is France’s most important export customer. In its last reported tender on Dec. 5, Algeria purchased about 500,000 tons of milling wheat at about $227 to $228 a ton c&f.
  • China will continue selling state frozen pork reserves after the week-long Lunar New Year holiday, said a notice on the website for the China Merchandise Reserve Management Center on Wednesday. Beijing released 20,000 tons of frozen pork from the reserves on Tuesday to increase supplies during the national holiday, when pork consumption typically spikes. Since early December, China has released more than 200,000 tons from the frozen reserves, after African swine fever cut more than a fifth from the country's pork production last year.
  • Brazil will start discussions on joining the Organization of the Petroleum Exporting Countries during a visit to Saudi Arabia in July, its energy minister Bento Albuquerque said on Wednesday. "I have a visit to Saudi Arabia in the middle of this year, then we can start the discussion," Albuquerque told Reuters, adding that Brazil's membership in OPEC would not happen this year. Brazil's president mooted the idea of joining OPEC in October but the idea was not welcomed by industry as producers feared that Brazil would have to comply with output cuts which OPEC and other producers have agreed to. When asked if his country would cap output in line with OPEC terms, Albuquerque said: "It is a matter of negotiations, we have to start discussions.
  • South Korea's largest feedmaker Nonghyup Feed Inc. (NOFI) purchased an estimated 134,000 tons of corn in an international tender which closed on Wednesday. The grain can be sourced from optional origins. It was bought in two consignments at $219.55 a ton c&f and $219.55 a ton c&f. The corn was sought for arrival in South Korea in April and May.
  • Dalian Closes: Corn (Sept):  $7.24 (-0.09) Soybeans (Sept):  $15.63 (-0.14)
  •          CIF Corn: 52H (+6) at 55H (+5)
  •          CIF Soybeans: 50H (-1) at 58H (-1)
  •          CIF SRW:  110H (NC) at UNQ
  •          CIF Soybean Meal:  -4H (+1) at 2H (NC)
  •          Barge Freight:  320% (NC) at 330% (NC)
  •          Dollar index:  97.59 (+0.06)
  •          Crude Oil:  58.02 (-0.36)

_______________________________________________________________

MARKET MOVERS

USDA Weekly EXPORT INSPECTIONS Monday 1-27-2020 @ 10:00 am

USDA Weekly USDA EXPORT SALES Friday 01-24-2020 @ 7:30 am


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, nor intended to be relied upon for specific trading in commodities here in

Like us on Facebook and follow us on Twitter @Premiercoop

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