04-27-2012 06:31 AM - edited 04-27-2012 02:28 PM
At the close:
The July corn futures settled 18 cents higher at $6.25 1/2. After trading as high as $15.09 per bushel, the July soybean contract finished 13 1/2 cents higher $14.93 1/2. The July wheat futures settled 14 1/2 cents higher at $6.50. The July soyoil futures settled $0.22 lower at $55.53.
In the outside markets, the NYMEX crude oil is $0.15 per barrel higher, the dollar is lower and the Dow Jones Industrials are up 40 points.
Wow! What a day, what a week.
Tim Hannagan, PFGBest.com analyst says it's time to take profits. "Time to look to take profits on the spread. In January, I explained why traders would aggressively by November new crop beans and sell the December new crop corn as a spread into this spring planting. Since the January high of 6.00 on December corn, it has dropped $.80. Since January, the November beans have rallied 2.25. That's up 3.00 plus dollars on this spread or $15,000. Time to consider taking profits. Reasons, one, you have the profits, it's a profit-taking business. Two, were in transition on the spread. New crop contracts are poised to trade-off weather now and not the success of more corn acres to be planted and less bean acres to be planted. In fact, many believe the surge in bean prices over corn, will lead to the June 30 planted acreage report showing less corn and more beans acres planted versus the March 30 planted intention reports."
May and July soybeans have hit $15 mark. Corn rushes higher too, up 29 cents at 10am!!!
UNBELIEVABLE! Look at these purchases!!
--USDA announces Friday that an 'unknown' buyer purchases 1.44 million metric tons of U.S. corn for 2012-13.
--USDA announces Friday that China bought 120,000 mt of U.S. corn for 2011-12 delivery.
--USDA announces Friday that China bought 110,000 mt of U.S. soybeans for 2012-13 delivery.
How do you think the market will digest this news?
The July corn futures trade 19 3/4 cents higher at $6.27 1/4. After trading as high as $15.06 per bushel, the July soybean contract is trading 18 1/2 cents higher $14.98 3/4. The July wheat futures are trading 14 1/2 cents higher at $6.50. The July soymeal futures trade $7.60 per short ton higher at $429.40 and July soyoil futures trade up $0.14 at $55.89.
In the outside markets, the NYMEX crude oil is $0.21 per barrel lower, the dollar is lower and the Dow Jones Industrials are up 29 points.
At the open:
The July corn futures trade 10 cents higher at $6.17. The July soybean contract is trading 14 3/4 cents higher $14.95. The July wheat futures are trading 8 3/4 cents higher at $6.43 1/4. The July soymeal futures opened $6.80 per short ton higher at $428.30 and July soyoil futures trade up $0.15 at $55.91.
In the outside markets, the NYMEX crude oil is $0.13 per barrel lower, the dollar is lower and the Dow Jones Industrials are up 2 points.
The U.S. Gross Domestic Product came in at 2.2% this morning, below the trade's expectation of 2.6%. This could help keep interest rates low, but not sure what it says about farm markets.
A lot of talk that rain is coming for the Midwest, off-and-on, for the next two week-period. With good coverage, the rains are expected from Illinois to Colorado.
At least one analyst sees Monday's Crop Progress Report showing U.S. corn 41-45% planted, above the 5-yr average. Personally, I talked with a central Illinois farmer yesterday that says he is completing corn, like many others are, and a lot of guys are going right into beans. I'd say that Illinois farmers are on the fast track.
Why the rally in beans overnight? Well, here's one idea: The International Grains Council has dropped its estimate of South America's 2011-12 soybean production another 3.6 mmt to 115.9 mmt. And that estimate is now down 20.0 mmt since September.
At 6:30 am:
Early calls: Corn 3-5 cents higher, soybeans 10-12 cents higher, and wheat 2-4 cents higher.
Overnight grain, soybean markets=Trading higher.
Crude Oil=$0.33 per barrel lower.
Wall Street=Seen trading mixed with the U.S. GDP eyed and plenty more earnings reports.
World Markets=Asia/Pacific and Europe's stocks are mixed-to-lower.
More in a minute,
04-27-2012 07:46 AM
04-27-2012 07:50 AM
It seems like Illinois corn growers would normally keep planting corn, in a great planting season like this year. But, since the soybean market is so hot, do you think these growers have decided to empty the seed box of that yellow crop and put in some of that round brown seed?
04-27-2012 08:06 AM