Q&A: CME Group ag manager Tim Andriesen

Q: What is your role?

A: I’m responsible for the business part of the CME. In the clearinghouse, risk is managed between the counterparties and trades. And the front-end of that is the actual trading. Within the CME Group’s business lines, I’m responsible for the agricultural business line. THis involves understanding what the products are, what products we should offer, old products and making sure they remain pertinent, and managing this part of the business line.

Q: Is your background in Agriculture?


USDA sends corn lower

As of Sept. 1, the U.S. corn and soybean stocks are estimated to be higher than the trade expectations. As a result, the USDA's data this morning is bearish for most of the farm markets.

Discuss the USDA Report in Marketing Talk.

For corn, the USDA pegged the Sept. 1 corn stocks at 824 million bushels, compared to the average analysts' estimate of 688 million. 


Corn falls on USDA data

The USDA expects the U.S. 2013 corn crop to drop, but not below the trade's expectations, while the soybean crop is raised compared to previous thoughts.

As a result, the CME Group corn and soybean markets are reacting to Thursday's numbers mixed.

In its September Crop Production Report, the USDA pegged the U.S. 2013/14 corn crop at 13.84 billion bushels, compared to the USDA's previous estimate of 13.763 billion bushels and the average trade estimate of 13.620 billion.


USDA data pressure short-lived

DES MOINES, Iowa ( U.S. 2013 average corn yield is holding its own, despite the inclement weather, according to the USDA/WASDE Reports released Thursday.

As a result, the CME Group corn, soybean markets reacted negatively , initially. But, have turned around, since the 11am CT report. At mid-session, corn contracts turned mixed and soybean futures reversed higher Thursday. 

In its report, the USDA pegged the U.S. 2013 corn yield at 156.5 bushels per acre equal to its June estimate of 156.5 bushels per acre. 


USDA data drops farm markets

DES MOINES, Iowa ( USDA released bearish corn, soybean, and wheat market data Wednesday. In its June Crop Production Report, the USDA increased stockpiles for corn and wheat, while leaving soybean estimate unchanged.

As a result, the CME Group corn, soybean, and wheat markets have reacted negatively to today's report.

Peter Meyer, PIRA Energy Group senior director of Agricultural Commodities, says the big surprise of the report is the fact that the government didn't lower U.S. corn acres.


USDA challenged on March data

Nearly three weeks after the USDA released data that sent the corn market plunging, the discussion surrounding that Quarterly Stocks Report continues.

This time, the debate as to how the USDA found more corn stocks than the trade expected involves the USDA itself. On Thursday, the MDA Weather Services company invited USDA to discuss the March Report with market analysts and conference attendees.


Report sends corn 'limit' down

CHICAGO, Illinois ( U.S. farmers will plant 97.3 million acres of corn and 77.1 million acres of soybeans in 2013, according to the USDA.

The market is reacting negatively: Corn has fallen to its daily 40¢ limit down; soybeans dropped 28¢ following the report; and the wheat market is down double-digits.

Discuss the USDA Reports in Marketing Talk


Farmland poised for more big gains in 2013

CHICAGO, Illinois ( -- Flush with cash, many U.S. farmers have already become active this year in purchasing land or paying higher cash rents. Because of the intense buying interests from farmers and institutional investors, farmland could see another 15%-20% jump in value in 2013, licensed farm managers, lenders and real estate brokers told a group of investors Monday.

The Chicago Farmers Group hosted the land value specialists at its monthly meeting in Chicago.