corn options

corn options

April 21st,2015

US corn sowings maintained their slow start, spurring talk of a shift by farmers to later-planted crops, although concerns have yet to spread to the main producing states which would provoke support to prices.

US growers had sowed 9% of their corn as of Sunday – up seven points week on week but behind remaining behind the average of getting 13% of their crop in the ground as of then, US Department of Agriculture data showed.

The figure was also behind market expectations for a figure of at least 10%.

The slow start reflected wet Midwest conditions, particularly in eastern and southern areas, with just 6% of crop in Tennessee sown, compared with an average of 43%.

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April 30th, 2012

Corn Futures – Speculators reduced bullish bets on corn by more than any other commodity, just before the U.S. reported its single biggest export sale in 18 years and prices had their largest two-day rally in almost a month.

Money managers cut corn wagers by 30 percent to 103,079 futures and options in the week ended April 24, the biggest decline since June 2010, according to data from the Commodity Futures Trading Commission. The drop of 43,511 contracts was larger than for any of the 18 raw materials tracked by Bloomberg. Holdings across all the commodities fell for a fifth week, the longest slide since June 2010, the data show.

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April 26th, 2012

Corn futures rose for the first time in three days on signs of increased Chinese demand for U.S. supplies. Soybeans and wheat also gained.

U.S. exporters sold 682,500 metric tons of corn yesterday, including 262,500 tons to China and 420,000 tons for unknown destinations, the Department of Agriculture said. The sale was the third in as many days, bringing total purchases this week to 1.28 million tons.

“There was a sale of over 600,000 tons to unknown destinations, which I suspect will turn out to be China,” said Adam Davis, a Melbourne-based commodity trader at Merricks Capital Services Pty. Earlier this week, the USDA announced exporters sold 480,000 tons to unknown destinations for delivery before the end of the marketing year on Aug. 31 and 120,000 tons for unknown buyers after Sept. 1.

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April 23rd, 2012

Corn futures rose on speculation that China, the world’s largest pork consumer, will buy more U.S. grain to meet expanding demand for feed from hog producers. Wheat also advanced.

U.S. exporters sold 120,000 metric tons of corn to unknown destinations for delivery after Sept. 1, the U.S. Department of Agriculture said today. China’s state traders may buy U.S. supplies if corn falls to $5.50 a bushel, the China National Grain & Oils Information Center said today. Before today, prices for delivery in December, after the U.S. harvest, were down 8.4 percent this year to $5.3675 a bushel in Chicago.

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April 19th, 2012

Corn rose the most in more than two weeks on speculation demand for U.S. supplies may increase after futures slumped to a four-month low yesterday.

Corn futures for delivery in July advanced as much as 2.8 percent to $6.1075 a bushel on the Chicago Board of Trade, the biggest intraday gain for the most-active contract since March 30, and traded at $6.0625 by 2:34 p.m. Paris time. Futures fell to $5.9175 yesterday, the lowest level since Dec. 19.

The Korea Corn Processing Industry Association issued a tender to buy as much as 55,000 metric tons of corn for food. Private buyers in China may seek permits to buy more corn after the price drop, according to Shanghai JC Intelligence Co.

“Corn has fallen a lot recently, and the $6 must look pretty attractive to physical buyers as well as some investors,” Park Jong Beom, a senior trader at Tong Yang Securities Inc., said today by phone from Seoul. “The import tenders by Korea today are the evidence and today’s price gain can be explained in that sense.”

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April 12th, 2012

Corn futures climbed for the first time this week and wheat gained as freezing weather threatened crops in the U.S., the world’s largest shipper of both grains. Soybeans also rose.

Temperatures dropped as low as 26 degrees Fahrenheit (minus 3.3 degrees Celsius) in eastern parts of the Midwest overnight, Telvent DTN said. About 17 percent of the corn crop in Illinois, the largest U.S. grower after Iowa, had been planted as of April 8, ahead of the previous five-year average of 1 percent, Department of Agriculture data show.

“Freezing temperatures across the U.S. Midwest may have damaged emerging corn crops, according to U.S. weather forecasters,” Luke Mathews, a commodity strategist at Commonwealth Bank of Australia (CBA), said in a report e-mailed today. “Supporting values were concerns that cold temperatures may have damaged U.S. wheat crops.”

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April 12th, 2012

Commodity Brokers – IntercontinentalExchange Inc. (ICE) plans to offer futures and options in U.S. grains and oilseeds, expanding competition with CME Group Inc., the leader in agriculture products.

Subject to regulatory review, futures in corn, wheat, soybeans, soybean oil and soybean meal will debut May 14 on ICE Futures U.S., Atlanta-based IntercontinentalExchange said today in a statement. The contracts will settle on a cash basis linked to prices on CME Group’s Chicago Board of Trade.

Sugar, coffee, cocoa, cotton and orange-juice futures currently trade on IntercontinentalExchange’s electronic platform. ICE Futures U.S., formerly the New York Board of Trade, ended futures floor trading in early 2008. The Chicago- based CME Group, owner of the world’s largest futures market, offers both pit and electronic trading. The two companies also offer competing energy contracts.

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March 30th, 2012

Corn futures prices surged the most since June 2010, wheat had its biggest gain in five months, and soybeans rallied after government forecasts signaled tighter U.S. crop supplies, renewing concerns that food inflation will quicken.

Corn inventories on March 1 fell more than analysts forecast to the lowest for this time of year since 2004, the U.S. Department of Agriculture said today in a report. Wheat reserves dropped to a three-year low, and planting intentions trailed estimates. Farmers will sow 73.902 million acres with soybeans this year, down 1.4 percent from 2011 and the lowest in five years, the agency said after surveying farmers.

Global food prices rose to an all-time high last year, triggering unrest in northern Africa and the Middle East. The United Nations said this month that grain imports by the world’s poorest countries will climb to a record in the 12 months ending June 30. The U.S. was the world’s biggest exporter of corn, soybeans and wheat last year.

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March 30th, 2012

S&P 500 Futures – U.S. stocks rose, extending the biggest first-quarter advance since 1998 for the Standard & Poor’s 500 Index, as stronger-than-forecast growth in consumer sentiment and spending bolstered optimism in the economy.

The S&P 500 gained 0.3 percent to 1,407.76 at 11:17 a.m. New York time. The gauge has rallied 12 percent since the end of 2011, gaining for a second straight quarter. The Dow Jones Industrial Average added 50.36 points, or 0.4 percent, to 13,196.18 today. The Nasdaq Composite Index rose 0.1 percent to 3,097.45 as a 19 percent rally since Dec. 30 put the gauge on pace for the best first-quarter since 1991. (CCMP)

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March 30th, 2012

Corn Futures – Corn inventories in the U.S., the world’s biggest grower and exporter, were down 7.9 percent on March 1 from a year earlier, the government said. Wheat supplies fell 16 percent, while soybeans reserves rose.

Corn stockpiles on March 1 totaled 6.009 billion bushels, down from 6.523 billion a year earlier and the lowest for that time of year since 2004, the U.S. Department of Agriculture said today in a report. Analysts in a Bloomberg survey expected 6.16 billion, on average.

“It’s going to be a tight supply situation until farmers begin harvesting this year’s crops,” Marty Foreman, an economist for Doane Advisory Services Co. in St. Louis, said before the report. “We still need to grow a good crop this year to rebuild inventories.”

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