Grain and Soy Market Morning Comments Benson Quinn Commodities Inc. Minneapolis, MN October 14, 2014 Morning Comments: It has been a mixed overnight session with beans leading market higher this morning. Slow harvest pace and tight pipelines are offering support with beans filling an open chart gap back from mid-September in overnight price action. Corn harvest pace has also been slow with market lacking an offer from the producer as cash values are seen under $3 a bushel. December corn is mildly higher this morning but has traded thru last week’s highs and has traded to highest values since mid-September on an overnight high. Trade in the wheat complex has been mixed to lower this morning on lack of significant global demand. The USDA is back to business after yesterday’s holiday and we should have weekly export inspection this morning and crop progress this afternoon. Corn harvest is expected to be 20 to 25% complete vs. 37% average with bean harvest 25 to 30% complete vs. 55% average. NOPA crush for September will be released tomorrow with average estimate of 103 million bushels vs. 108.7 million for same month last year. FSA will release its latest update to certified planted acreage data tomorrow morning. Strong storms blew thru the southern and eastern Midwest yesterday. Rains have moved off to the east but heavy rain amounts will keep the combines out of the fields for several days. Forecasts are turning warmer and drier in the 6 to 10 day and should aid in increasing harvest pace for both beans and corn. Weather in Brazil looks to become more favorable for soybean planting by the weekend as high pressure ridge that has kept northern and central Brazil hot and dry looks to be breaking down and bringing a start to the rainy season. Soybean plantings in Brazil are around 6% done compared to 9% average. Macro markets are mixed with US equities higher on better earnings from Johnson & Johnson and Citigroup. US dollar is also trading higher while crude has retreated and is trading back near 2-year lows. Overnight Trade: Symbol @ 7:45 CZ SX MWZ WZ KWZ 347 957 ¾ 557 ½ 504 ¼ 584 ½ Daily Trading Limits: Net Change +1 +12 ½ -1 ¼ -1 +¼ High Low 349 ½ 960 562 510 588 ¾ 345 ¼ 943 ¼ 556 501 ¼ 582 Initial Corn Beans MWheat CWheat KWheat Expanded Good Thru 35 cts 100 cts 60 cts 45 cts 50 cts Weather: 24 Hour Rainfall Est. 1-3 Day Precip Outlook 6-10 Day Temp Outlook 6-10 Day Precip Outlook Export News/World Trade: South Korea seeks 25,200 MT of US wheat for February. Japan is in this week for 117,000 MT of wheat in its regular weekly tender. There was no daily reporting with USDA back today. Palm Oil/Chinese Dalian/French Wheat: Malaysian palm oil futures closed higher on late session fund buying with bearish news said to be priced in. The benchmark Dec contract settled up 6 MYR at 2,163 MYR a tonne. Chinese Dalian futures were mixed in overnight trade. French milling wheat futures are trading higher this morning with the November contract up 0.75 euro at 158.25 euro a tonne. Global Equities: The Dow Jones Industrial Average closed down 223 points in its prior session settling at 16,321. China’s Shanghai Composite was down 7 points to close at 2,359. Hong Kong’s Hang Seng Index was down 95 points to close at 23,048. The Japanese Nikkei Index was down 364 points closing at 14,937. European markets are trading mixed with a lower bias. US equity futures are pointing to a higher start. Technical Support & Resistance: Symbol 1st Support 2nd Support CZ 332 ¼ 325 SX 933 ¼ 904 MWZ 545 ¾ 539 ¼ WZ 487 ¾ 481 ¼ KWZ 570 ¼ 561 ½ 1st Resistance 349 ¾ 965 565 ½ 513 ¾ 588 2nd Resistance 357 975 577 ¼ 523 ¼ 597 ½ Point of Interest: Canada has more inland waters and lakes than any other country in the world. Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. These observations include information from sources believed to be reliable, but no independent verification has been made and therefore their accuracy and completeness cannot be guaranteed. Benson Quinn Commodities, Inc. does not guarantee that such information is accurate or complete. Opinions expressed reflect judgment at this date and are subject to change without notice. BQCI is a wholly owned subsidiary of Archer Daniels Midland and An Introducing Broker for ADMIS, 701 South 4th Avenue, Suite 800, Minneapolis, MN 55415, 1-800-438-7070.
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