02-14-2012 06:35 AM - edited 02-14-2012 01:55 PM
At the close:
The March corn futures settled 3 cents higher at $6.33 3/4. The March soybean contract endede 3 cents higher at $12.55. The March wheat futures closed 7 3/4 cents lower at $6.75 1/2. The March soymeal futures closed $0.40 per short ton lower at $330.10. The March soyoil futures closed $0.03 lower at $53.02.
In the outside markets, the NYMEX crude oil is $0.10 per barrel lower, the dollar is higher and the Dow Jones Industrials are down 78 points.
One floor trader says, "The trade wants to be long beans and short corn in new crop. That ratio has moved considerably. Also they still like cn/cz corn spread. Tight cash as farmer/commercial will wait until mid-March to let loose in my opinion. We are trying to bridge from old crop tightness in corn to most likely a 1.2-1.5 carryout in new crop. Three drought yrs in a row seems highly unlikely, but who knows."
Meanwhile, One analyst says, "Beans are the leader off good bean exports the last two day, continued dry weather on southern Brazil and expectations for a Chinese bean purchase at the grain trade meetings in Washington this week."
The March corn futures trade 2 1/4 cents lower at $6.37 1/4. The March soybean contract is trading 5 cents higher at $12.57. The March wheat futures are trading 1 3/4 cents lower at $6.39 1/2. The March soymeal futures are trading $0.40 per short ton lower at $330.10. The March soyoil futures are trading $0.02 higher at $53.07.
In the outside markets, the NYMEX crude oil is $0.02 per barrel higher, the dollar is higher and the Dow Jones Industrials are down 30 points.
At the open:
The March corn futures trade 4 3/4 cents lower at $6.34 1/4. The March soybean contract is trading 1/2 of a cent higher at $12.52 1/2. The March wheat futures are trading 6 1/4 cents at $6.34 1/4. The March soymeal futures are trading $1.40 per short ton lower at $329.00. The March soyoil futures are trading $0.20 lower at $52.85.
In the outside markets, the NYMEX crude oil is $0.22 per barrel higher, the dollar is higher and the Dow Jones Industrials are down 43 points.
--USDA Tuesday announces that an 'unknown' buyer purchased 215,000 mt of U.S. soybeans for 2011-12.
--Also, USDA says an 'unknown' buyer purchased 68,000 mt of U.S. soybeans for 2012-13 delivery.
This should be a nice boost for the soybean market, huh?
News & Noise:
--Japan Tuesday seeks 138,959 mt of milling wheat.
--Russia buys 16,200 mt of milling wheat.
--Australia's wheat crop now estimated at a record 29.5 mmt.
--Brazil's soybean harvest is 11% completed, up 6% vs. a week ago and 2% higher than a year ago.
--The U.S.'s Jan, Dec., and Feb. temps are headed for the 10th warmest on record.
--Good rains are headed for dry areas of Argentina this weekend and next week.
A lot of folks are keeping one eye on this month's Nov '12 beans and Dec '12 corn contracts. In February, the average prices of those contracts will set the price levels that farmers can use to lock in RP crop insurance rates. So far, Dec. corn has averaged $6.39 and Nov. beans $12.37. How do those prices hit you, if they end up being the ones used for crop insurance rates?
Happy Valentine's Day! Don't forget your lover today. Early calls: Corn 2-4 cents lower, soybeans 3-5 cents higher, and wheat 2-4 cents lower.
Overnight grain, soybean markets=Trading mixed.
Crude Oil=$0.54 per barrel higher.
Wall Street=Seen trading higher as European economic indicators seem to be showing signs of improvement. Plus, U.S. earnings are expected to beat. January U.S. retail sales are expected to surprise to the upside today.
World Markets=Mostly higher.
More in a minute,
02-14-2012 08:03 AM
I think you were mistakenly using the nearby corn futures rather than new crop Dec. 2012 futures in your calculation. I'll forgive you for trying to raise our insurance coverage levels.
02-14-2012 08:34 AM
Mike, you think that's China making those buys here this week to coincide with their VP's trip to Iowa?
02-14-2012 09:26 AM
I was told last week that China would be in the market this week. And actually, they are expected to be announcing fresh purchases at their presentations this week, through the delegation. Keep in mind, the China Lunar New Year Holiday kept the Asians away from the market, what a few weeks ago. So, they might just be trying to catch up with some February needs.
02-14-2012 09:40 AM
RMA says $5.74 so far for corn in the midwest., $12.37 for beans. My heart jumped when I saw your corn number. I have several of my cash rent contracts based off of the spring price of corn, so far my rent price will be a little lower than last year. Keep up the good work and don't believe the rumor that you will be replaced by Ashlie Kolb.