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08-14-2012 06:28 AM - edited 08-14-2012 02:28 PM
At the close:
The Dec. futures corn contract closed 3 1/4 cents lower at $7.89. The Nov. soybean contract settled 2 3/4 cents lower at $15.98. The Sep. wheat futures contract settled 16 3/4 cents lower at $8.40 per bushel. In the outside markets, the NYMEX crude oil is $0.60 per barrel higher, the dollar is higher and the Dow Jones Industrials are 9 points higher.
The Dec. futures corn contract is trading 2 3/4 cents higher at $7.95. The Nov. soybean contract is trading 1 1/2 cents lower at $15.99 1/4. The Sep. wheat futures contract is trading 9 1/4 cents lower at $8.47 1/2 per bushel. The Dec. soymeal futures contract is trading $0.10 per short ton lower at $478.30. The Dec. soyoil contract is trading $0.01 lower at $53.74.
In the outside markets, the NYMEX crude oil is $0.64 per barrel higher, the dollar is higher and the Dow Jones Industrials are 33 points higher.
One analyst says, "Corn has been the strength of the market here today. I have no real news, except for initial harvest in some parts of the Delta and Southeast where the yield reports were good. Not so, maybe in the Midwest, where corn is getting cut for silage in some areas, but down there the yields are fine," he says.
Soybeans found some follow-through selling from the rains, I think. But, beans have held and now seem ready to work higher. Wheat is lower after Egypt bought from Russia at cheaper prices. They might have a bad crop, but Russia is still selling and that as bad news for those wanting wheat prices to work higher.
Otherwise, not a super busy day anywhere, so far, he says.
"Brazil business is quiet for me today. And the strength in the back month beans shows that I am probably not alone that way," he says.
Corn prices are trading slightly higher, soybeans dip below Tuesday.
Egypt buys 120,000 mt of Russian and Ukranian wheat Tuesday for Sept. delivery.
In early trading:
The Dec. futures corn contract is trading 11/2 of a cent lower at $7.91 3/4. The Nov. soybean contract is trading 1 1/2 cents lower at $15.99 3/4. Sep. wheat futures are trading 5 1/2 cents lower at $8.51 1/2 per bushel. The Dec. soymeal futures contract is trading $1.10 per short ton lower at $477.30. The Dec. soyoil contract is trading $0.01 ower at $53.74.
In the outside markets, the NYMEX crude oil is $0.69 per barrel higher, the dollar is higher and the Dow Jones Industrials are 27 points higher.
--Japan seeks 70,835 mt of U.S. milling wheat Tuesday.
Early calls: Corn 5-7 cents higher, soybeans 10-12 cents higher, and wheat 7-9 cents higher.
Overnight grain, soybean markets=Trading higher.
Crude Oil=$0.60 per barrel higher.
Wall Street=Seen opening higher, ahead of the U.S. Retail Report.
More in a minute,
08-14-2012 06:56 AM
Mike, It appears that grain was put "on sale" again yesterday with the lower markets. Just a question for your trader friends, At what price level do they think that exports would pick up again? Will the exports and general buying continue to be hand to mouth? If the need for grain is there, does it really matter? thanks!
08-14-2012 10:14 AM
I wonder if we are way up into price territories that folks like China, Japan and other U.S. major customers have never had to have a strategy for. You wonder if they are shooting from the hip (and I know they don't like to do this), as to when to buy, when to wait, and when to decide just how long they can remain on the sidelines. What do you think?
08-14-2012 11:18 AM
No. I don't believe they are. I wonder if these historically higher prices have gotten them off of their game a bit. For example, for awhile there China regularly jumped in and out of the corn market at $6.00. Below $6 they bought, above $6 they stopped. Now, we are over $8 and it doesn't look like $6 is in the cards anytime soon. How do you play that if you're Xi Chang?
08-14-2012 12:17 PM - edited 08-14-2012 12:18 PM
That's why I asked the questions in the first place......I certainly don't know and I don't know anyone who does.....again, that's why I asked the question. I would think that they would exhaust all other possibilities first, before they come back and buy at these levels. But we all know that there aren't many alternatives. Will they wait until their bin augers are rattling? Or will they simply do without?
08-14-2012 01:38 PM
Good question Tiger. If they import 6 mil metric tonnes and it costs them $2 more that's $480 million increase. In an economy that size is that very much? What do you think they spend on there army every year? Or their olympic team? Do you fund the army to keep the hungry in check, or buy food?
08-14-2012 04:00 PM
The Chinese hold over $1 trillion worth of U.S. Treasury Securities... I doubt a few extra dollars a bushel won't cause financial ruin. ...I'm sure they still seek out the best price they can get.
08-14-2012 11:09 PM
Link is a feature article in the Sioux City Journal about a local early harvest on the flat Missouri River bottom.....