VINIMEX are pleased to update market news on January 16, 2021 as below
COMMODITY MARKET MOVEMENT ON CBOT – January 15, 2021
Weather: Rain and snow is expected to hit the Midwest and Plains between Saturday and Tuesday. No areas are expected to pick up much more than 0.25" of rain. NOAA's 8-to-14-day outlook predicts cool, wet weather for much of the central U.S. between January 22 and January 28.
General: Corn and soybean futures finished the week up 6.9% and 2.4% respectively. USDA reported lower-than-expected yields and production, along with moderately tighter stocks. Wheat prices saw moderate gains Friday on the latest news out of Russia.
NOPA members processed 183.159 mbu of soybeans in December. That was below the 185 mbu average trade guess but still up from November and a record for December. USDA announced a private export sale for 318,000 MT of 21/22 soybeans to unknown. CFTC data from 1/12, USDA’s report day, showed managed money was 166,485 contracts net long. That came after a 9,342 contract reduction from long liquidation and new selling. Commercials reduced their net short 16,846 contracts to 297,117. For soymeal, managed money funds were 84,408 contracts net long. International Grains Council reduced 2020/21 soy output by 6 MMT to 359 MMT - citing reduced yield potential in So. Am. They carried the change through the demand side leaving stocks at 45 MMT.
The markets will be closed on Monday in observance of MLK Day. USDA announced a private corn sale for 110,000 MT of old crop corn to Mexico. The Commitment of Traders report, with data as of Tuesday the 12, showed corn specs were net buyers of 24,826 contracts. OI was up 18,654 contracts to a 22 week high 487k. On net, managed money was 374,714 contracts long corn futures and options. Commercials had closed some longs, extending their net short to a record 774,381 contracts. International Grains Council reduced their 2020/21 corn output forecast by 13 MMT to 1.133 billion – citing reductions to U.S., Argentina, and Brazil. IGC also cut their ending stocks projection by 7 MMT to 268 MMT.
The weekly Commitment of Traders report showed an 8,223 contract reduction to managed money’s SRW net long. Spec trader OI increased by 343 contracts on the week, leaving the group 16,987 contracts long on net as of 1/12. In KC wheat, spec traders were just 605 contracts more net long to 55,062. CoT report data had managed money funds net long 11,797 contracts in HRS wheat. That was 4,049 contracts more net long for the largest net shift wk/wk in 12 weeks. IGC sees 1 MMT less of world wheat production, forecasting 768 MMT. Wheat stocks were reduced 1 million as well, to 294 MMT. Russia announced discussions to extend the export tax through the next crop cycle, that follows a recent decision to raise it from 25 Euros/tonne to 50 Euros/tonne for the March 1-June 30 time period.
PRICE MOVEMENT ON CBOT JAN 15