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12-06-2013 07:41 AM - edited 12-06-2013 01:53 PM
At the close:
The Dec. corn futures contract settled 1 1/4cents higher at $4.24. The Jan. soybean futures contract ended 2 1/2 cents lower at $13.25. March wheat futures closed 1 cent lower at $6.51 per bushel. The Jan. soymeal futures contract settled $0.70per short ton lower at $427.40. The Jan. soyoil futures closed $0.12 lower at $40.49.
In the outside markets, the NYMEX crude oil is $0.03 per barrel higher, the dollar is lower and the Dow Jones Industrials are 185 points higher.
The Dec. corn futures contract is trading 3/4 of a cent lower at $4.22. The Jan. soybean futures contract is trading 8 cents lower at $13.19. March wheat futures are 1 cent lower at $6.51 per bushel. The Jan. soymeal futures contract is trading $3.60per short ton lower at $424.50. The Dec. soyoil futures are trading $0.02higher at $40.63.
In the outside markets, the NYMEX crude oil is $0.24 per barrel higher, the dollar is lower and the Dow Jones Industrials are 141 points higher.
"Today's market action is a classic buy the rumor, sell the fact in soybeans. Today is day-1 of index roll. So, front-end of soybeans, soymeal, and soyoil will run into selling," Matt Connelly, independent CME Group floor trader says.
"For corn, ethanol demand remains strong, exports ok."The trade is eyeing the idea that the market will see a big re-balance in early January. The re-balance of the index will buy 100k corn contracts between Jan 6-10.""
Yet another analyst describes the action today like this: "It looks like soybeans are pegged at $13.20 basis the January futures. In 9 of the last 10 trading days, January has traded at that $13.20 level. Exports are fantastic, offering plenty of support, but reaction is muted because it’s becoming obvious the Chinese have over-bought and cancellations will be in the offing. In corn, lots of support for the March contract at $4.25 but the upside is limited by farmer selling, which should materialize between $4.40 and $4.50. End of year index rebalancing should see 100,000 corn futures bought but the tail of a big U.S. crop should limit the upside. After the WASDE on Tuesday, I expect very little for the remainder of the year. I also expect very little from the WASDE, with the exception of slightly higher U.S. export estimates for both corn and soybeans."
At the open:
The Dec. corn futures contract is trading 1/4 of a cent lower at $4.22. The Jan. soybean futures contract is trading 4 cents lower at $13.24. March wheat futures are 1/2 of a cent higher at $6.52 per bushel. The Jan. soymeal futures contract is trading $1.20 per short ton lower at $426.90. The Dec. soyoil futures are trading $0.10 higher at $40.71.
In the outside markets, the NYMEX Brent crude oil is $0.08 per barrel higher, the dollar is lower and the Dow Jones Industrials are 129 points higher.
--USDA announces that an 'unknown' bought 384,150 tons of U.S. soybeans Friday. WOW, WOW, WOW!
China maybe? No, I thought they were destocking ()
Jeff Colemen, Trean Group analyst and CME Group floor trader, sees jittery traders, resulting in mixed trading:
"There was mixed trade overnight as corn and wheat futures look to end the session on the plus side with soybean options continuing to slide lower. March corn futures began the electronic only session trading to the downside but turned around in the early morning hours trading in a 5.25 cent range on decent volume. Traders will be shoring up positions ahead of Tuesday’s USDA report. Taiwan bought a load of US corn overnight but there was no purchase of US corn by South Korea. Traders are still a little jittery over the China GMO situation. January soybean futures are 7.5 cents lower this morning after trading in an 11 cent range overnight as strong demand numbers are being offset by expectations of a large South American soybean crop. March Chicago wheat futures are up a penny as we head into the close of the overnight session as traders have seemingly settled on a trading price for Chicago wheat after the large crop projections from Australia and Canada. The severe weather in the plains is now keeping traders on edge a bit," Coleman says.
Early calls: Corn is seen mixed, soybeans 4-6 cents lower, and wheat 1-2 cents higher.
Overnight grain, soybean markets=Trading mixed.
Brent Crude Oil=$0.08 per barrel higher.
Wall Street=Seen higher, as U.S. Jobless Rate falls.
World Markets=Asia/Pacific stocks were lower, Europe stocks higher.
More in a minute,
12-06-2013 09:33 AM
WASHINGTON, Dec. 6, 2013 -- Private exporters reported to the U.S. Department of Agriculture export sales of 384,150 metric tons of soybeans for delivery to unknown destinations. Of the total, 189,150 tons is for delivery during the 2013/2014 marketing year and 195,000 tons is for delivery during the 2014/2015 marketing year.
- See more at: http://www.fas.usda.gov/scriptsw/PressRelease/pressrel_dout.asp?Entry=valid&PrNum=0150-13#sthash.mXu...
12-06-2013 09:48 AM
I am not so impressed anymore either.... How many times will that deferred "sale" be canceled?
Needs to be some changes made in some of the details. Just love the "we sold some" but don't know who to for a week or so.
On the other hand demand destruction???? Recovery was quick.
If I was them I would want something tangable instead of a sheet of paper with $ signs on it.
12-06-2013 10:07 AM
At this point in time - it would need to be a sell double that for weeks on end - My guess it that the trade is looking for the USDA to RAISE bean yields ( Jan report )- - then today's sell are non event - and they keep raising the SA bean crop then lets throw in - Deutsche Bank cutting back on there commodity department - following J.P. 's steps .
12-06-2013 02:22 PM
MARKET COMMENTARY December 06, 2013
By Raymond Jenkins
Corn futures managed to eke out a positive close today, and that feels like victory after a week where we saw a lot of negative news stories about the rejection of corn cargoes in China due to a GMO trait that has not been approved in that market.
We would encourage you to have some short term price targets in place, since we are getting some day to day volatility.
My sense is that a lot of folks have decided that mid $4.50 cash corn is an attainable goal (we’ve already booked corn at that price for January delivery several times this week), and that $5 may be a fairly lofty number this year unless we get into a weather situation here or in another major growing area.
We want to thank all of our corn suppliers who made this a very successful harvest season in 2013. We have unloaded over 20 million bushels of corn since the combines started to roll in early September----and there are still a few folks out corralling the last acres of the 2013 corn crop right now----and they might be competing with some deer this weekend, too.
Be careful, whether farming or hunting.