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Community Manager
marketeye
Posts: 3,180
Registered: ‎05-03-2010
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Floor Talk April 27

[ Edited ]

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."

 

Mike

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May and July soybeans have hit $15 mark. Corn rushes higher too, up 29 cents at 10am!!!

 

Mike

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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?

 

Mike

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At mid-session:

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.

 

Mike

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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.

 

Mike

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At 7:45am:

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.

 

Mike

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At 7:10am:

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.

 

Mike

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At 6:40am:

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.

 

Mike

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At 6:30 am:

Early calls: Corn 3-5 cents higher, soybeans 10-12 cents higher, and wheat 2-4 cents higher.

 

Trackers:
Overnight grain, soybean markets=Trading higher.
Crude Oil=$0.33 per barrel lower.
Dollar=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,

 

Mike

Veteran Advisor
Mizzou_Tiger
Posts: 2,329
Registered: ‎11-02-2010
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Re: Floor Talk April 27

Why use 30 words when 6 will do....

Supply and demand fundamentals meet reality........
Advisor
jrsiajdranch
Posts: 2,123
Registered: ‎05-03-2010
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Re: Floor Talk April 27

I'll use two words.

 

Dollar = lower

Veteran Advisor
Mizzou_Tiger
Posts: 2,329
Registered: ‎11-02-2010
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Re: Floor Talk April 27

That's the icing not the cake.....
Senior Contributor
Buckley_HF
Posts: 165
Registered: ‎12-29-2011
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Re: Floor Talk April 27

Mike, I'll go ahead and confirm what your IL farmer friend said. Here in EC IL we finished up this week as did many of our neighbors. A lot of guys already have beans planted and it seems the majority are going full steam now with them even though it's been chilly. We NEED a rain and some warmth. Not asking for to much right? :smileyhappy:
Community Manager
marketeye
Posts: 3,180
Registered: ‎05-03-2010
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Re: Floor Talk April 27

Buckley_HF,

 

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?

 

Mike

Senior Contributor
Buckley_HF
Posts: 165
Registered: ‎12-29-2011
0

Re: Floor Talk April 27

I think it's been such an early year guys want to finish corn before starting with beans, that having been said I know of some guys that have shifted some "limbo" acres to beans. The bean market in my opinion is definitely picking up coc acres. Guys are tired of getting burned with yield drag around here. We got very cold here this am, not sure what low was but it was 30 @ 5am. It's nicking some 2-4" corn. Have to go out and check things again this afternoon. But that's why guys have been trying to pull back on bean planting pace
Senior Contributor
p-oed Farmer
Posts: 398
Registered: ‎05-04-2010
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Re: Floor Talk April 27

More china corn and beans sales Mike?........

 

This information is worth what you payed for it...... :~)
Senior Contributor
p-oed Farmer
Posts: 398
Registered: ‎05-04-2010
0

Re: Floor Talk April 27

[ Edited ]

I see the post now...... Sorry

 

The market will most likely sell off another .50 with this announcement....p-oed

This information is worth what you payed for it...... :~)
Senior Contributor
Buckley_HF
Posts: 165
Registered: ‎12-29-2011
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Re: Floor Talk April 27

Someone needs to add up the total sales this week of corn and soya! Wow is all I can say.