Midday Comments from CHS Hedging's Ami Heesch 4-8-2013
From: Heesch, Ami
Sent: Monday, April 08, 2013 11:21 AM
Subject: Midday Comments for Monday, April 8, 2013
Sent: Monday, April 08, 2013 11:21 AM
Subject: Midday Comments for Monday, April 8, 2013
Highlights….
China officials confirm last
week’s rumors of them purchasing a number of SRW cargos for Jun-Aug…….
USDA S&D report to be
released at 11 AM on Wednesday this week…..
Equity markets quiet this
morning…….US$ up 0.057 at 82.708….CD$ down 0.0015 at 0.9796….gold down 4-5 at
1575……Mini Dow down 39 at 1445.00…S&P up 0.25 at 1546.25…..
Corn……
Struggles to stay in positive
territory, despite solid gains in the wheat and soybean pits…….
Weekly export inspections were
reported at 10.1 million bushels versus trade estimates of 14-18 million
bushels…
Country movement fairly quiet
this morning….basis not doing much…….
K/N spread at 12 ¾ inverse
(10 ¾-13 range)…..some think we will not see single digits on this spread given
the lack of movement and current cash markets…..
Beans……
Bouncing back after three days
of bashing……despite ongoing concerns of bird flu in China (21 cases reported so
far …death toll at 6)…..
Weekly export inspections were
reported at 15.2 million bushels versus trade estimates of 12-16 million
bushels….
Technical buying, along with
bargain hunters emerged , which pushed prices higher this morning……
Position squaring ahead of
Wednesday’s USDA data could also be providing some underlying support in the
soybean market……
Cash markets firm on lack of
country selling……
K/N spread holds around a 20
cent inverse (17 ½ -20 ¼ )…..could go higher on continued strength in cash
markets and a friendly USDA report on Wednesday…..
SA struggles with rains delaying
soybean harvest in Argentina……port congestion continues and loading remain
slow…….no news of more Chinese soybean purchases….
Wheat……
Strength coming from Chinese SRW
purchases…….poor US Plains HRW conditions……cold weather conditions in parts of
the Black Sea region…..
Weekly export inspections were
reported at 27.16 million bushels, above trade estimates of 17-26 million
bushels…..
China says they will look to
source more SRW to replenish their reserves….could be as much as 2.0 million
bushels…..
More rain/snow events headed for
parts of the US Plains this week…..weekly crop conditions out this afternoon at
3PM Chicago Time……
Al / CHEDG
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Ami L Heesch
Market Analyst 800-328-6530 651-355-6549 651-355-3723 fax |
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CHS Hedging, Inc.
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The Right Decisions for the Right Reasons
This material has been prepared by a sales or trading employee or agent of CHS Hedging, Inc. and should be considered a solicitation. This communication may contain privileged and/or confidential information and is intended only for the use of the individual or entity to which it is addressed. If the reader of this message is not the intended recipient, you are hereby notified that any unauthorized dissemination, distribution, and/or use of this communication is strictly prohibited. CHS Hedging, Inc. makes no representation or warranty regarding the correctness of any