Thursday, April 25, 2013

Daily Summary from CHS Hedging's Chris Steinhoff

DJIA is up 80 points…gold is up $40.00+ and silver is $1.50 better…US$ index was 0.317 weaker…


Corn===firm with strength in the CK and CN leading the way as the market sees technical bounce follow thru from yesterday’s rebound of the new lows for the move

                === Buenos Aires Cereals exchange trimmed its corn production forecast to 24.8mmt from 25mmt last week

                ===they also say harvest is 35% complete in Argy

                ===IGC raises their estimate for world production

                ===weather forecasts still show a chance of rain 5-6 days out, inspiring some concern about delayed planting again as me get ready to close out the month of April

                                And we will have to plant the majority of the US corn crop in May this year

                ===CK/CN was non eventful today, settling at a 20 ¾ inverse, ½ weaker…N/Z closed at a  93 ¾ inverse…Z/H was a 10 ¾ carry

                ===CIF was down 1 to 2 cents on the nearby, Chicago processors were down 1. Most ethanol plants were steady to firm

                ===Flooding still a concern along the Miss and ILL river systems

                ===export sales were 12.4mb, slightly behind the 11.9mb needed weekly

===USDA announced 300tmt new crop corn to China and 240tmt to unknown… buying a discounted time slot vs the nearby makes sense


Beans===double digit gains as spec buying took the lead today as soymeal sales remain incredibly robust

                ===soymeal sales of 193.3tmt compares to a negative 3.9tmt needed weekly to hit the current USDA target

                ===Crushers crush beans to support the export program…USDA says imports of meal will be 350tmt, 136 more than a year ago

                ===CIF beans were back up 5 to 10 cents today…. many crushers saw bids firm 5 to 15 cents with many bids approaching +100           

                ===movement remains slow

                ===SN posted the highest close since Monday this week as yesterday’s low held support

===SX settled above $12.00 after a few days below…


Wheat===KCBT leads the way…Frost, drought are lead stories, and what will the tour find next week???

                ===the damage and production losses across the southern plains is known but indefinite in severity

                ===HRW has a stocks to use of 36% which will help allow the HRW market to withstand a minor issue

                ===There was wheat moving, or at least being priced from the farmgate today. mainly old crop but there was scattered old and new HRW

                ===$8.00 appears to be the magic cash number in areas of ND and MT

                ===keeping hearing fertilizer and seeding occurring in W ND, WSD and parts of MT

                ===KC spreads firmed again today with the KWK/N finishing at a 2 ¼ inverse

                ==MGEx and CME spreads settled weaker..MWK/N at a 15 inverse, CME K/N at a 2 ½ carry…





Christopher Steinhoff
Market Analyst
651-355-3723 fax



CHS Hedging, Inc.
The Right Decisions for the Right Reasons

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