rounded corner
rounded corner
top border

WASDE REPORT FOR 6/12/2018


Bookmark and Share

Futures trading involve the substantial risk of loss and may not be suitable for all investors. Past performance does not mean future results.

Howard Tyllas Daily Numbers and Hedge Ideas 1 week trial offer for $50

Attention Corn & Soybean Producers:

One week trial offer for $50 on learning about the best way to hedge.In my opinion, my strategy is the best I have seen since I became a member in 1976 trading corn and soybeans for my own account.

Are you tired of listening to the same BULL ****, and services that do not have a plan if the market goes down instead? Hedge means to take risk off the table, and my service has all producers 100% hedged and they do have most of the upside unhedged (if we can rally for whatever reason). Hedge with a Pro and option expert who has been trading grains for 40+ years.

This service mission is to make producers and end users self-directed, and not need information provided by any service. All of my subscribers were seeking to hedge in a better way than all the services they had in the past were providing. When I bought my membership/seat in 1976, nobody would help or educate me to what works for them, and what does not. I learned from the losers what does not work by listening to what they said and how they traded. They taught me what NOT to do. You, like my subscribers, have already learned what not to do, now you want to learn what works well for you, no matter up, down, or sideways market.

As I have said every year "Think what you want but always have a hedge on". Bull or bear, we use the same strategies, but each self-directed person reflects what they think in the strike prices they select and use. No herd following here. It is the opposite, when everyone is buying and the price is near significant resistance, we are improving our hedge by capturing more income when cheap to do so, and on price breaks when everyone is selling and the market is near contract lows, we are improving our hedges buying back our upside when cheap to do so.

Hedge means to take risk off the table, not add to it. How is it possible for hedge service to recommend buying back your corn when above $4.00, please tell me how that is a hedge? We were hedging and improving our hedges then.

Simple easy to understand option strategies give my producers the odds greatly in their favor and gives them control of the protection they need and the upside potential they want. Mindset is also on the forefront every year, live and hedge in the half full instead of the half empty. Learn how to read the charts clearly and easy, to help locate long-term significant support and resistance, to help determine how much protection you need, and what upside objective is reasonable to achieve.


WHEAT: U.S. 2018/19 wheat supplies are increased slightly this month on higher beginning stocks and production. Winter wheat is forecast up 6 million bushels to 1,198 million with modest increases in all winter wheat classes and total wheat production is now at 1,827 million. U.S. exports are raised 25 million bushels to 950 million on tightening Russian exportable supplies. Projected 2018/19 ending stocks are lowered 9 million bushels to 946 million, down 12 percent from last year.

The projected season-average farm price is up $0.10 per bushel with the midpoint at $5.10, compared to the revised 2017/18 price of $4.75. World 2018/19 wheat supplies decreased this month by 1.2 million tons on production declines in Russia, the EU, and Mexico not completely offset by higher projected production from India and the United States. Russias production is lowered by 3.5 million tons to 68.5 million on drier-than-normal conditions this spring in winter wheat areas and excessive wetness in spring wheat regions lowering plantings. Russias wheat production is projected down 19 percent from last years record 85.0 million tons. EU wheat production is reduced 1.0 million tons to 149.4 million on dry conditions this spring for winter wheat in Germany and Poland. Indias wheat production is raised 2.0 million tons to 97.0 million, based on record yields and supported by reports of higher procurement for the 2018/19 crop compared to last year.

Projected global 2018/19 trade is lower, mainly on reduced Russian exportable supplies with a smaller crop. Russias exports are reduced 1.5 million tons to 35.0 million, but Russia still remains the worlds leading wheat exporter. Global imports are lowered, mainly on reduced imports for India as the government recently raised its wheat import tariff. Projected 2018/19 world consumption is 3.0 million tons lower, primarily on reduced feed usage for Russia and the EU.

Global ending stocks are raised 1.8 million tons this month to 266.2 million but are still below last years record 272.4 million.

COARSE GRAINS: This months 2018/19 U.S. corn outlook is for reduced beginning stocks, lower feed and residual use, greater corn used for ethanol production, and lower ending stocks. Beginning stocks are down largely reflecting a 75-million-bushel increase in projected exports for 2017/18 to 2.300 billion bushels, which if realized would be the highest since 2007/08. Exports during the month of April were record high, besting the prior monthly shipment record set in November 1989. Export inspection data for the month of May implies continued robust global demand for U.S. corn, while old crop outstanding sales at this point in the marketing year are record high. Projected 2018/19 corn used for ethanol is raised 50 million bushels, offsetting a 50-million-bushel reduction in food, seed, and industrial (FSI) useof sorghum.

Corn feed and residual use is lowered 25 million bushels with increased ethanol by-product production and higher expected prices. With supply falling and use rising, ending stocks are lowered 105 million bushels to 1.577 billion bushels, which if realized, would be the lowest level since 2013/14. The season-average farm price is raised 10 cents at the midpoint with a range of $3.40 to $4.40 per bushel. The 2018/19 U.S. sorghum outlook is for a 50-million-bushel increase in forecast exports offset by reduced FSI use. Exports are raised reflecting expectations of Chinas demand for U.S. sorghum, based on the announcement by The Ministry of Commerce May 18 terminating the anti-dumping and subsidy investigation on imported sorghum originating from the United States. This months 2018/19 foreign coarse grain outlook is for lower production, reduced trade and lower stocks relative to last month.

Russia corn production is down based on government data indicating lower-than-expected planted area. Barley production is reduced for Ukraine, India, and the EU, but raised for Argentina. For 2017/18, Brazil corn production is lowered, as below-normal rainfall in the Center-West and South during May reduces yield prospects for second-crop corn. Area is also reduced based on the latest government statistics. Major global trade changes for 2018/19 include lower forecast corn exports for Russia, with reductions in corn imports for Vietnam, Iran, and Algeria. Foreign corn ending stocks are lowered from last month, mostly reflecting reductions for the EU, Brazil, and Vietnam that more than offset increases for Ukraine and South Africa.

RICE: U.S. 2017/18 rice ending stocks are raised 3.0 million cwt this month on a 1.0-millioncwt increase in imports and a 2.0-million-cwt decrease in exports. Both changes reflect the pace of trade to date. The import increase is primarily for long-grain aromatics from Asia. The entire export reduction was medium- and short-grain and is now projected at the lowest level in more than a decade. The 2017/18 season-average farm price for all rice is lowered $0.10 per cwt at the midpoint to a range of $12.30 to $12.70. Total supplies for 2018/19 are raised 4.0 million cwt on increased beginning stocks and imports. Domestic and residual usage is raised 1.0 million cwt on larger supplies.

Exports are raised 2.0 million cwt following the unusually low medium- and short-grain sales from the previous market year. Ending stocks for 2018/19 are raised 1.0 million cwt and prices are unchanged. Global supplies for 2018/19 are lowered 2.1 million tons primarily on reduced China production. Chinas harvested area is decreased 0.5 million hectares and production is down 2.3 million tons. The reduced China supplies are accounted for by a 1.0-million-ton reduction in consumption and a 1.3-million-ton decrease in stocks. Global consumption is lowered 0.6 million tons and exports are raised fractionally. With reduced supplies more than offsetting lower use, global ending stocks are down 1.5 million tons.


OILSEEDS: This months U.S. soybean supply and use projections for 2018/19 include lower beginning stocks, slightly higher crush, and lower ending stocks. Lower beginning stocks reflect higher crush for 2017/18. Soybean crush for 2017/18 is raised 25 million bushels to 2,015 million reflecting an increase in projected soybean meal domestic disappearance and exports. Higher soybean meal domestic disappearance reflects strongerthan-expected use for the marketing year through April.

Soybean meal exports are raised based in part on commitments through May. Soybean ending stocks for 2017/18 areprojected at 505 million bushels, down 25 million from last month. Ending stocks for 2018/19 are projected at 385 million bushels, down 30 million from last month. Price forecasts for 2018/19 are unchanged this month. The 2018/19 season-average price for soybeans is forecast at $8.75 to $11.25 per bushel; soybean meal and oil prices are projected at $330 to $370 per short ton and 29.5 to 33.5 cents per pound, respectively. The 2018/19 global oilseed supply and demand forecasts include higher production, exports, and stocks compared to last month. Higher global soybean production is partly offset by lower rapeseed and cottonseed. Soybean production is up 0.7 million tons to 355.2 million mainly on higher production for Brazil.

A higher trend yield for the 2018/19 Brazil soybean crop reflects harvest and yield results for the 2017/18 crop, which is increased 2 million tons to 119 million. With higher production, soybean exports for Brazil are revised up for both the 2017/18 and 2018/19 marketing years. Ending stocks for Brazil are also increased with higher production and a lower crush estimate for 2016/17.

Global 2018/19 soybean ending stocks are increased 0.3 million tons to 87.0 million with higher stocks for Brazil partly offset by lower stocks for the United States and Argentina. Stocks for Argentina are lowered mainly on a 2.0-million-ton reduction to the 2017/18 crop to 37 million. Other changes include lower EU rapeseed production which is reduced on lower yields for Germany and Poland, where crops experienced warm and dry weather conditions through key flowering stages.

SUGAR: U.S. sugar supply for 2018/19 is decreased 44,387 short tons, raw value (STRV) to 14.203 million on lower beginning stocks and lower cane sugar production. Cane sugar production in Texas is lowered by 20,000 STRV to 160,000 based on processor-reported lower area harvested but with the same crop yield and sucrose recovery as in the previous year. Imports for 2018/19 are unchanged and like last month, projected TRQ imports of specialty sugar include only the WTO minimum quantity as additional quantities have not been announced by the Secretary of Agriculture.

Exports are increased by 35,000 STRV to 85,000 on larger expected shipments to Mexico. U.S. sugar supply for 2017/18 is decreased 49,387 STRV on lower cane sugar production and fewer imports. Florida cane sugar production for 2017/18 is reduced 14,387 STRV on processors estimates. Re-export imports are reduced 50,000 STRV. Partially offsetting this reduction is an increase in high-tier tariff imports as indicated in preliminary U.S. Customs import data. Deliveries for human consumption are reduced by 25,000 STRV based on paceto-date, but this reduction is tempered by high raw sugar stocks held by cane refiners for this time of year. In Mexico 2018/19 sugar imports are increased by 30,767 metric tons (MT) to 115,000. The end uses of these imports are forecast for human consumption and are projected to be imported from the United States.

LIVESTOCK, POULTRY, AND DAIRY: The 2018 forecast for total meat production is lowered from last month, but production forecasts are unchanged for 2019. Beef production for 2018 is lowered primarily as lighter carcass weights more than offset higher second-quarter steer and heifer and cow slaughter. Pork production for 2018 is lowered on the current pace of secondquarter slaughter and lower-expected commercial slaughter in the third quarter. Slightlyheavier expected hog carcass weights in the second and third quarters partially offset declines in slaughter.

USDAs Quarterly Hogs and Pigs report will be released June 28th and will provide an indication of producer farrowing intentions for the remainder of 2018. Broiler production for 2018 is raised on the pace of second-quarter production data and stronger growth in production during the second half of the year. Turkey production in the second quarter of 2018 is raised on the current pace of slaughter; no changes are made to outlying quarters. Egg production for 2018 is raised on recent hatchery data.

The 2018 beef import forecast is raised on increased shipments from Oceania, while the beef export forecast is raised largely on strong Asian demand reflected in recent trade data. The 2018 pork export forecast is raised on continued strong shipments to a number of key markets and expectations of continued pork exports to Mexico. Pork exports for 2019 are raised on expected strong demand to a number of key trading partners. Second-half 2018 turkey export forecasts are raised as U.S. prices remain attractive. The 2018 broiler trade forecast is unchanged from the previous month.

No changes are made to 2019 beef and poultry trade forecasts. Cattle prices for 2018 are lowered slightly on second-quarter price data; no changes are made to outlying quarters. Hog prices are raised for the second quarter of 2018 on current price strength, but no changes are made to the outlying quarters. Second-quarter broiler prices are lowered for 2018; no changes are made to outlying quarters. Turkey prices are increased fractionally for 2018, reflecting a higher second-quarter forecast. Egg prices for 2018 are lowered on recent price data. For 2019, hog prices are lowered on weaker expected demand, but no changes are made to cattle, poultry, and egg price forecasts for 2019.

The milk production forecast for 2018 is reduced from last month on slightly lower cow numbers and slower expected growth in milk per cow. No change is made to the annual cow herd for 2019, but the milk production forecast for 2019 is lowered from last month on continued slow growth in milk per cow. For 2018, fat basis exports are raised from the previous month as second-quarter exports are strong and continued strength in sales of a number of fat-containing products will largely mitigate the impacts of Mexicos tariffs on U.S. cheese. For 2019, the fat basis export forecast is lowered.

Skim-solids basis export forecasts for 2018 and 2019 are raised from the previous month on robust demand for non-fat dry milk and lactose thus far in 2018, and this strength is expected to carry into 2019. Fat basis imports for 2018 and 2019 are raised on higher imports of butterfat products, while skim-solids basis import forecasts for 2018 and 2019 are reduced on lower imports of milk proteins and a number of other dairy products. The 2018 cheese price is unchanged at the midpoint of the range, but is raised for 2019. The 2018 butter price forecast is raised, but is reduced slightly for 2019. Nonfat dry milk (NDM) and whey price forecasts are raised for both 2018 and 2019 on strong demand and a reduced production forecast. For 2018, the Class III price is raised on the stronger whey price. The Class IV price forecasts reflects higher butter and NDM prices. For 2019, both Class III and Class IV prices are raised. The all milk price is forecast higher at $16.60 to $17.00 per cwt for 2018 and is increased to $16.70 to $17.70 per cwt for 2019.

COTTON: The most significant revision to this months U.S. cotton supply and demand estimates is a 500,000-bale increase in 2017/18 exports, to 16.0 million bales, due to above-average late-season shipments. U.S. ending stocks are now forecast at 4.2 million bales in 2017/18, and 4.7 million bales in 2018/19, for a stocks-to-use ratio of 25 percent. The projected range of the marketing-year-average farm price is raised 5 cents at each end to 60- 80 cents per pound.

The 2018/19 world projections include lower production for China, Pakistan, and Australia offset in part for higher production for Brazil. World production is nearly 800,000 bales lower this month, while 2018/19 consumption is reduced only 85,000 bales, as a 225,000-bale reduction for South Korea is largely offset by increases for Uzbekistan and Vietnam. World beginning stocks for 2018/19 are unchanged from a month earlier, but ending stocks are 725,000 bales lower. At 83.0 million bales, 2018/19 world ending stocks are projected 5.2 million bales lower than a year earlier, but stocks outside of China are expected to rise for the third consecutive year.

Want to know what I think for tomorrow and going forward? Subscribe!


The markets covered daily are 2017 & 2018 Soybeans, Corn, and Wheat.

My numbers are sent on part 1 before the night session begins. Commentary follows a few hours later on part 2. (via your email)

Find out why my USA and Foreign subscribers keep renewing this service for years.

Howard Tyllas Daily Numbers and Hedge Ideas is designed to help you plan your hedging strategies, and speculators for day or longer term trading.

Howard Tyllas Daily Numbers and Hedge Ideas $279.00 monthly

Put yourself in a position to make money, use the daily numbers service!

Email:dailynumbers@futuresflight.com

http://www.futuresflight.com/

Tel. Office 1-702-405-7245 Cell 1-312-823-918



Recent articles from this author



About the author


Currently a member of The Chicago Board of Trade (CBOT) and registered with the Commodity Futures Trading Commission (CFTC) as a floor broker and a member of the National Futures Association (NFA). I started my career in 1973 on The Chicago Mercantile Exchange trading floor working for a major firm. Three years later I purchased my first membership and began what would become a thirteen-year commitment to trading soybeans for my own account on the trading floor. I began trading options on futures since their inception in Chicago about twenty years ago; doing so, I traded in various pits on the trade floor. 

One of the major lessons that I have learned from all my years of experience is that knowledge is an important condition for the possibility of successful trading. Knowledge gives you a better chance to succeed by eliminating obvious mistakes: with it, you will never find yourself shamefully uttering, “If I only took the time to learn”.  
         
I want to save you from such regrets by teaching you where the danger is, what it looks like, and how to go around it, while still keeping an eye on your destination of success. In short, I will teach you how to combat error with knowledge.
       
My mission is to educate you, giving you my 45 years experience, wisdom, and knowledge from which you will then be able to use and benefit from at will.

I know what will help you make money, and I know what will insure failure. Use my services and prevent, “If I only knew”.  
  

Howard Tyllas

Futures trading involves the substantial risk of loss and may not be suitable for all investors. Past performance does not mean future results.

If you have a question or comment, email me dailynumbers@futuresflight.com

Visit my website www.futuresflight.com

                                                 

                        

Published by Barchart
Home  •  Charts & Quotes  •  Commentary  •  Authors  •  Education  •  Broker Search  •  Trading Tools  •  Help  •  Contact  •  Advertise With Us  •  Commodities
Markets: Currencies  •   Energies  •   Financials  •   Grains  •   Indices  •   Meats  •   Metals  •   Softs

The information contained on InsideFutures.com is believed to be accurate but is not guaranteed. Market data is furnished on an exchange delayed basis by Barchart.com. Data transmission or omissions shall not be made the basis for any claim, demand or cause for action. No information on the site, nor any opinion expressed, constitutes a solicitation of the purchase or sale of any futures or options contracts. InsideFutures.com is not a broker, nor does it have an affiliation with any broker.


Copyright ©2005-2018 InsideFutures.com, a Barchart.com product. All rights reserved.

About Us  •   Sitemap  •   Terms of Use  •   Privacy Policy