Wednesday, May 1, 2013

Daily Summary from CHS Hedging's Chris Steinhoff

At 115pm…crude oil was $2.70 lower, DJIA was 96 points lower, gold was down $20.00 and silver was 51 cents weaker…many countries are on the May Day holiday today..China economy slowing down?

Corn===spent most of the day lower with CZ feeling the most pressure
                ===weather and planting delays take center stage but was mostly ignored today, May 1
                ===Corn planters run in various part of the country, but a precip event moving across in a line from Duluth MN to Denver, CO, slows fieldwork
                ===weekly ethanol production was up last week at a marketing year high of 857k barrels/day..this equates to an annual grind of 4.793bb…USDA is at 4.550bb
                ===CIF was a nickel weaker for the spot time slot. Firmer in the deferreds....Chicago unload was firm…most processors were mainly steady/better..river bids were steady/firm
                ===The N/U firmed 3 ¾ cents today to a 73 ½ inverse…N/u had a trading range of 75 to 67 ¼ vs yesterday’s range of 75 to 65
                ===N/Z settled at a 95 ¾ inverse
                ===farmer selling was light but movement was definitely seen. Scattered old crop and new crop
                ===CZ held onto $5.50 on the close but well off yesterday’s high of $5.70…the 4/24 low(last Tuesday) was $5.17
                ===CZ14 even seeing some farmer interest
                ===market becoming OK with a few less acres?
                ===total export sales(old crop and new crop) estimates for tomorrow 800tmt to 1.0mmt

Beans===talk of China cancellations helped to pressure the nearby contracts
                ===CIF was  soft again today
                ===total old and new crop export sales estimates for tomorrow is 300-500tmt., meal 150-250 and soyoil 0-15…will there be net cancellations?
                ===Brazil harvest is nearly complete, Argy is almost 60% done
                ===front end Brazil basis is a 40-50 cent discount to June as logistics are still not running smoothly
                ===river basis seems to be slightly better, many crushers were firm
                ===some meal basis saw a weaker tone
                ===market acts like we may be gaining some beans acres
                ==SX flirts with the $12.00 mark again with the recetn low at $11.86 ½ offering support

Wheat===crop tours lead the headlines as the HRW gets into parts of KS where drought has had a negative effect
                ===but not all KS has a major [
                ==also hearing reports out of OK that some are guessing a state yield of 25-26bpa,
                ===MGex, KC K/N are inverted, CME is a carry…all are a carry N thru summer 2014
6 to 10 Day Outlook - Temperature Probability 6 to 10 Day Outlook - Precipitation Probability

Christopher Steinhoff
Market Analyst
651-355-3723 fax

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