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marketeye
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Floor Talk April 1

[ Edited ]

At the close:

The May corn futures contract settled 5 1/2 cents higher at $5.07. The Dec. corn futures settled 7 1/4 cents higher at $5.05. The May soybean futures contract closed 20 1/2 cents higher at $14.84. The Nov. soybean futures ended 20 cents higher at $12.07. May wheat futures finished 12 cents lower at $6.85 per bushel. The May soymeal futures contract closed $3.40 per short ton higher at $482.70. The May soyoil futures finished $0.98 higher at $41.40.
In the outside markets, the Brent crude oil is $1.92 per barrel lower, the dollar is lower and the Dow Jones Industrials are 70 points higher.

Tim Hannagan, Walsh Trading Inc., says funds sparked today's rally.
"Funds were heavy buyers of corn and beans. There certain to roll longs into july as they put the most money in for the summer growing season weather premium rally. This years spring summer weather looks very questionable," Hannagan.

 

Mike

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At mid-session:

The May corn futures contract is trading 6 3/4 cents higher at $5.08. The Dec. corn futures are trading 7 3/4 cents higher at $5.06. The May soybean futures contract is 23 cents higher at $14.87. The Nov. soybean futures are trading 16 1/2 cents higher at $12.03. May wheat futures are 10 3/4 cents lower at $6.86 per bushel. The May soymeal futures contract is trading $3.60 per short ton higher at $482.90. The May soyoil futures are trading $0.91 higher at $41.33.
In the outside markets, the Brent crude oil is $1.32 per barrel lower, the dollar is lower and the Dow Jones Industrials are 61 points higher.

 

One market analyst says the funds are still in the market, supporting the rally. "So, the question becomes what will they do with these higher-priced futures when the May contracts expiration approaches? Will they roll them into July? Elesewhere, bean oil is the leader today. I'm not sure if this is spread unwinding, if its dry in Malaysia, or what. Also, cash prices are not being helped. So, we seem to be divorcing fundamentals from fund-buying."

It's interesting to look at the Nov. soybean to Dec. corn ratio, now at 2.38, losing a little from yesterday. With 2.23 being the acceptable ratio, anything above favors soybean plantings, anything below favors corn profitability. If you want to keep track of the ratio, every 0.10th of a point equals 50¢."

 

Mike

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At the open:

The May corn futures contract is trading 5 cents higher at $5.05. The Dec. corn futures are trading 5 cents higher at $5.03. The May soybean futures contract is 13 cents higher at $14.77. The Nov. soybean futures are trading 10 cents higher at $11.97. May wheat futures are 6 cents lower at $6.90 per bushel. The May soymeal futures contract is trading $4.10 per short ton higher at $483.40. The May soyoil futures are trading $0.28 higher at $40.70.
In the outside markets, the Brent crude oil is $0.36 per barrel lower, the dollar is lower and the Dow Jones Industrials are 28 points higher.

 

Mike

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At 8am:

Here are a few things you might have missed, due to the BIG report yesterday.

1. This week's USDA Crop Progress and Planting Progress:

Kansas winter wheat crop at 32% good/excellent, down a point from last week; OK wheat was even with last week at 17% g/ex, while TX was also unchanged at 11% ge/x.

Southern states are behind on corn planting paces, compared to their five-year averages: Texas at 28% complete, Georgia 34%, Mississippi at 30%, and Arkansas at 18% complete.

 

2. There's new China information, this morning, on the Your World In Agriculture page. Once on the page, click on Kevin Roepke, Director of Trade Development for the US Grains Council--Beijing. Also, coming up on this page, this week, Scott Shellady will be spelling out what it means for the farm markets now that big banks are selling off their commodities businesses. Kevin's piece is interesting, though. Check it out, if you have a moment.

 

Thanks,

 

Mike

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At 7:30am:

Early calls: Corn is seen 4-5 cents higher, soybeans 10-12 cents higher, and wheat 7-9 cents lower.

Trackers:
Overnight grain, soybean markets=Trading mostly higher.

Brent Crude Oil=$0.36 per barrel lower.
Dollar=Lower.

Wall Street=Seen higher.

World Markets=Asia/Pacific stocks were lower, Europe stocks were higher.

 


More in a minute,

 

Mike