12-12-2011 06:37 AM - edited 12-12-2011 01:55 PM
Note to grain farmers: One of your top customers is feeding more DDGs.
At the close:
The March corn futures settled 1/4 of a cent lower at $5.94. The Jan. soybean contract settled 5 cents higher at $11.12. The March wheat futures closed 1 3/4 cents lower at $5.94 1/4. The January soymeal futures contract settled $2.60 per short ton higher at $279.50. The January soyoil futures settled $0.28 lower at $49.32.
In the outside markets, the NYMEX crude oil is $1.64 per barrel lower, the dollar is higher and the Dow Jones Industrials are down 229 points.
At the open, the March corn futures are trading 1 1/4 cents higher at $5.95 1/2. The Jan. soybean contract is trading 1 1/2 cents higher at $11.08 1/4. The March wheat futures are trading 4 3/4 cents higher at $6.00 3/4. The January soymeal futures contract is trading $1.80 per short ton higher at $278.70. The January soyoil futures are trading $0.47 lower at $49.13.
In the outside markets, the NYMEX crude oil is $1.20 per barrel lower, the dollar is higher and the Dow Jones Industrials are down 196 points.
The farm markets have trimmed losses and are trying to go higher. One analyst says, "The market is acting sold out to me. The weakness overnight was caused as much by the dollar as anything. The strong dollar is still around, but even last Friday this market was trying to act like it was running out of bear influence. Dry weather talk in South America supporting the beans too So far a light volume today to me."
At the open:
At the open, the March corn futures opened 8 cents lower at $5.86. The Jan. soybean contract opened 11 3/4 cents lower at $10.95 3/4. The March wheat futures opened 6 1/4 cents lower at $5.89 3/4. The January soymeal futures contract opened $0.40 per short ton lower at $276.50. The January soyoil futures opened $0.73 lower at $48.87.
In the outside markets, the NYMEX crude oil is $1.55 per barrel lower, the dollar is higher and the Dow Jones Industrials are down 167 points.
Market news & noise:
--Jordan buys 100,000 mt of wheat Monday.
--As of last week, money managers increased their net short position to 1,193 contracts. For corn, money managers are net long 141,221 contracts, and net short wheat 38,678.
--China's U.S. DDG imports totaled 1.3 mmt from Jan.-Oct., in 2011.
--China's 2011 soybean imports are estimated at 52.6 mmt. If realized, that would mark the first year-to-year decrease since 2004.
--China's Dec. 2011 soybean imports are estimated to be 5.4 mmt.
--China's Jan.-Nov. corn exports were up 10.3% vs. year ago.
--There's trade talk that China bought 2-3 cargoes of soybeans on Friday. No confirmation.
--The next 11-days could bring continued dryness to Argentina and southern Brazil.
--The Federal Reserve will hold its December meeting this week. Markets eye details of that get together.
Technically speaking, the corn market has a chance for another leg down, according to Tom White, FutureRoad.net analyst and CME Group floor trader. "The market made another “leg” lower last week which technically satisfied the minimal fifth wave requirement which we have discussed over the last several months. We will now take a neutral approach and consider the following. The weekly chart still shows the possibility that the “longer-term” move lower was corrective. We are basing around 40 on RSI and congesting near previous lows. The daily charts have met their fifth wave requirement and have traded in congestion over the last several weeks. It could be that we are starting to “base” higher and looking for a bottom. However, we really want to take a wait-and-see approach, as there are no convincing short-term signals right now."
Early calls: Corn, soybeans, and wheat 5-7 cents lower.
Overnight grain, soybean markets=Trading lower.
Crude Oil=$1.04 lower per barrel.
Wall Street=Seen trading lower with deepening concern over the euro zone's debt crisis. U.S. budget data will be released today.
World Markets=Asia/Pacific stocks are higher, and Europe's stocks lower.
More in a minute,
12-12-2011 09:55 AM - edited 12-12-2011 09:58 AM
More on MF Global.
sounds like farmers aren't the only people with the greed factor.
When it says those trades were profitable, but just came too late. Are those the trades that Soros' bought on the cheap when MF had to take bankrupcy? Seems there is one dense web of the rich and powerful. So Soro's has MF's customers' money. I wonder what they will pay me for finding it? Could it be possible that Corzine and Soros had a deal in place before the bankrupcy.
Somehow, I don't think they worry about Proverbs.
12-12-2011 11:25 AM
It appears dryness is starting to threaten part of the crop in South America. I'm hoping our Marketing Talk members in Argentina and Brazil can check in and give us an "on the ground" report soon.
12-12-2011 11:49 AM
Yeah it would be nice to hear from more people in South America. With Commodities being way oversold lately, You would think it would be time for a nice bounce with money starting to funnel back into the markets. Because corn is still on pace with exports and there is still a short crop??? or isn't that so. What are your thoughts Mike. I know MF global has a lot to do with people being on the sidelines. Have a great day
12-12-2011 02:36 PM
My understanding is dryness in Brazil is consistent with the Pacific Oscillation cycle that is also bringing rain to Australia and was responsible in a big way for N American weather this last year.One questions the liklihood of repeats - like drought in the Southern Plains and so on.