Eagle Bulk Shipping Inc (EGLE)

[Jester_Vandalay]

Morning Grains 11/27/13

CORN AND OATS

General Comments: Corn closed lower on fund selling. Funds were selling on big crop sizes and ideas of less demand. There is talk that Chinese interest is less right now. Farmers are not interested in selling and are waiting for higher prices, but end users keep buying. Ideas are that prices are cheap enough to créate additional export demand and that demand for Ethanol will stay strong. Export demand remains strong as well, and feed demand should be increasing as Corn is cheap when compared to Wheat. The harvest is now in its final stages. USDA might need to increase production estimates in January as yields have been very good this year. Production of over 14 billion bushels remains very posible.

SOYBEANS AND PRODUCTS

General Comments: Soybeans were unchanged to lower, and Soybean Meal closed higher on very strong demand and limited offer from producers. Soybean Meal basis levels appear to be very strong in Central Illinois. Soybean Oil was lower again. Front months were stronger than back months on spreads as the demand is thought to be for nearby shipments and as traders looked south and see good growing conditions in Brazil and Argentina. Soybean Oil closed lower on weakness in Palm Oil and worries about biofuel demand. There is a lot of talk that China is about to shift its buying to South America, but it keeps buying here and may have bought more yesterday. Farmers were mostly quiet yesterday. A big crop is expected in South America and is getting planted now under good conditions. Brazil has good moisture for farmers to plant, and rains are improved in Argentina. Mucch of the demand should now be known to the market and prices could start to work lower in the next couple of weeks.

RICE

General Comments: Prices closed lower in holiday market trading. Farmers are not selling and most have got the Rice in storage and are out preparing for the holidays and doing some hunting. Buyers will have to work hard to find any producer selling interest. Asian prices were a little lower yesterday. China will remain a significant importer and should import at least 5.0 million tons. Philippines has apparently bought 500,000 tons of Vietnamese Rice and said the Thai offers were too high. The Rice production losses from Typhoon Hayan and one a few weeks ago are now estimated by the government at 400,000 tons, and could be far higher. Rice production has also been affected as the last of the storm sends big rains into northern Vietnam and southern China and caused flooding at harvest time.

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