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BRIAN HOOPS

By Staff | May 20, 2015

Takeover bid rejected

Syngenta has confirmed a recent takeover bid from Monsanto, saying the proposal was rejected.

In a statement, Syngenta officials said the offer was undervalued. Monsanto’s offer reportedly

was valued at $42 billion.

There’s speculation Syngenta s public statement isn’t a flat-out rejection of Monsanto’s offer, but an attempt to bump the price.

The combination of Monsanto and Syngenta would bring together two giants in the seed, traits and crop protection business.

Record crush

Record soybean crushing and a boost to grain merchandising volumes more than offset a drop in ethanol profits for Archer Daniels Midland in the first quarter.

ADM reports earnings at $493 million, up 84 percent and more than investors had expected.

The increase comes despite a drop in revenue of 15.4 percent to $17.51 billion.

ADM corn processing profit was down led by a 73 percent slump in ethanol profits.

From Canada into U.S.

Richardson International, one of Canada’s largest grain handlers, is seeking expansion into the United States through acquisitions worth C$100 million to as much as C$2 billion ($1.67 billion), its chief executive said on Thursday. Richardson, which now owns two U.S. mills, is interested in Andersons Inc and private companies Bartlett and Scoular, as well as co-operatives, said Curt Vossen, chief executive officer, in an interview at the company’s Winnipeg head office.

Andersons’ shares on Nasdaq spiked as much as 13 percent shortly after Vossen’s comments were published, touching a three-month high, before finishing up 7.5 percent at $45.09. Vossen said

Richardson said it’s had no discussions with those companies and that it was unclear if they are willing to sell.

CORN ANALYSIS

Corn closed the week 1 cent higher.

Last week, private exporters did not announce any private export sales.

Weekly export sales showed corn sales at a marketing year low of 14.6 million bushels. Annual corn sales now have reached 1.62 billion bushels and sales are now down 154 mb compared to a year ago.

The weekly crop progress report from the USDA showed corn planting 75 percent complete compared to the five-year average of 57 percent complete.

U.S. corn is 29 percent emerged compared to 24 percent on average.

USDA pegged U.S. corn ending stocks for the 2014/15 crop year at 1.85 bb and projected the 2015/16 carryout at 1.746 bb, both of which were slightly below prereport estimates.

World carryouts from the USDA were shown at 192.50 million metric tons for the 2014/15 crop and 191.94 mmt for the 2015/16 crop.

These were both slightly larger than prereport expectations.

Informa updated its 2015 corn planting acres pegging total corn planted acres at 88.7 million. This is down 462,000 acres from its last estimate and compares to the current USDA number of 89.2 million acres.

The Comments of Traders report is bullish for corn futures and weekly charts show prices are near a potential double bottom.

Weekly charts show $3.73 as a chart breakout point the market will need to rally above to start a bullish trend.

Strategy and outlook: Producers are 100 percent sold of the 2014/15 crop, re-owned 50 percent with July options and 50 percent with September calls. Sold 10 percent of 2015 production. Sell 15 percent at $4.65 December.

SOYBEANS ANALYSIS

Soybeans closed the week 22.5 cents lower.

Last week, private exporters did not report any private sales.

Weekly export sales of soybeans were 5 mb. Annual sales are still record large at 1.82 bb, up 156 mb from a year ago.

The weekly crop progress report showed U.S. soybean planting is 31 percent complete compared to the five-year average of 20 percent complete.

In the monthly supply/demand report, the USDA estimated U.S. soybean ending stocks for the 2014/15 crop at 350 mb, and 500 mb for the 2015/16 crop.

World carryouts, the USDA said, were shown at 85.54 mmt for the 2014/15 crop, and 96.22 mmt for the 2015/16 crop.

NOPA said last week the soybean crush was 150.363 mb, well above estimates calling for 148.211 mb.

While this was below the 162.82 mb in March, but strongly above the 132.67 mb last year.

The April crush was a new all time record, shattering the previous record of 140 mb set in April of 2008.

Informa’s U.S. soybean acres came in at 87.2 million. This was up 2.55 million acres from its most recent estimate and compares to the USDA’s current projection for 84.6

million acres.

Strategy and outlook: Producers are sold 100 percent of 2014/15 production. Bought calls on 50 percent of 2014/15 production to re-own previous sales. Sold 10 percent of 2015/16 production. Sell 15 percent at $10.95 November.

This material has been prepared by a sales or trading employee or agent of Midwest Market Solutions and is, or is in the nature of, a solicitation. This material is not a research report prepared by Midwest Market Solution’s Research Department. Hoops can be reached at (605) 660-1155.

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