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marketeye
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Floor Talk April 2

[ Edited ]

A REAL PULLBACK

At the close:

The May corn futures contract settled 11 3/4 cents lower at $4.95. The Dec. corn futures ended 8 1/4 cents lower at $4.97. The May soybean futures contract finished 22 3/4 cents lower at $14.62. The Nov. soybean futures finished 9 cents lower at $11.98. May wheat futures closed 16 cents lower at $6.69 per bushel. The May soymeal futures contract settled $6.20 per short ton lower at $476.50. The May soyoil futures are trading $0.55 lower at $40.85.
In the outside markets, the Brent crude oil is $0.27 per barrel lower, the dollar is higher and the Dow Jones Industrials are 23 points higher.

One analyst says, "Weak basis levels here and especially in South America doomed the beans.  The funds needed to support the position they bought the last couple of days nd failed to show, and with cash markets on a weak note everywhere it was look out below.  Lots of talk of SBM coming to the US southeqast from S America which is true.  Wheat still a weather market and there are forecasts for some light precip out in the plains.  Might not do much good, but a weather drought market with the word precipitation mentioned creates the type of price action we had today.  Corn followed the other two markets."

 

Jeff Coleman, The Trean Group analyst, says profit-taking sinks corn, soybeans today.

"Today’s ethanol numbers were very bearish giving sellers more ammo as  prices declined 7% today as output, stockpiles and imports all increased. Options volatility was down in the front months while holding steady in the back months as traders adjust trading strategies toward a weather market.

 

May soybean futures got smacked for 22.25 cents today and settled at $14.62.25 per bushel while the new crop November contract dropped 9.25 cents and ended the session back under the $12 level at $11.98 per bushel. The soybean complex has had a very good run to the upside so a move like this is not so unexpected.

 

May Chicago wheat futures lost another 16 cents today as an improved 6-10 day weather forecast for the Plains states had the wheat bulls running for cover," Coleman says.

 

Mike

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At mid-session:

The May corn futures contract is trading 11 3/4 cents lower at $4.95. The Dec. corn futures are trading 8 1/4 cents lower at $4.97. The May soybean futures contract is 17 3/4 cents lower at $14.66. The Nov. soybean futures are trading 5 1/2 cents lower at $12.01. May wheat futures are 18 1/2 cents lower at $6.66 per bushel. The May soymeal futures contract is trading $7.60 per short ton lower at $475.10. The May soyoil futures are trading $0.23 lower at $41.17.
In the outside markets, the Brent crude oil is $0.64 per barrel lower, the dollar is higher and the Dow Jones Industrials are 12 points higher.

 

Mike

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At 11:40am:

U.S. Ethanol production increased this past week, according to the Renewable Fuels Association press release Wednesday. "According to EIA data, ethanol production averaged 922,000 barrels per day (b/d)—or 38.72 million gallons daily. That is up 37,000 b/d from the week before and the highest output rate so far this year. The four-week average for ethanol production stood at 892,000 b/d for an annualized rate of 13.67 billion gallons.

Stocks of ethanol stood at 15.9 million barrels. That is a 1.4% increase from last week and the second straight uptick.

Ethanol imports totaled 11,000 b/d, snapping a 25-week streak of non-existent imports dating back to the week of 10/04/2013."

 

Mike

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At the open:

The May corn futures contract is trading 2 cents lower at $5.05. The Dec. corn futures are trading 1 cent lower at $5.04. The May soybean futures contract is 4cents lower at $14.80. The Nov. soybean futures are trading 1 cent lower at $12.06. May wheat futures are 7 cents lower at $7.69 per bushel. The May soymeal futures contract is trading $0.80 per short ton lower at $481.90. The May soyoil futures are trading $0.41 higher at $41.81.
In the outside markets, the Brent crude oil is $0.69 per barrel lower, the dollar is higher and the Dow Jones Industrials are 23 points lower.

 

Mike

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At 7:30am:

Early calls: Corn is seen 2-4 cents lower, soybeans 5-7 cents higher, and wheat 7-9 cents lower.

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

Brent Crude Oil=$1.31 per barrel lower.
Dollar=Higher.

Wall Street=Seen higher.

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

 


More in a minute,

 

Mike