Reply
Veteran Contributor
Posts: 425
Registered: ‎09-09-2014
0

Floor Talk February 16

[ Edited ]

At 3pm:

Funds by 7,000 corn contracts Tuesday, 6,000 soybean contracts, and 3,500 wheat futures.

 

Mike

---------

At the close:

At the close, the March corn futures settled 4 cents higher at $3.62 3/4. March soybean futures finished 6 1/4 cents higher at $8.79. 
March wheat futures closed 6 cents higher at $4.63 1/2. March soymeal futures finished $2.40 per short ton higher at $264.40. March soyoil futures closed $0.18 lower at $31.62.  
In the outside markets, the Brent Crude oil market is $0.66 lower per barrel, the U.S. dollar is higher, and the Dow Jones Industrials are 219 higher.

 

-----

At mid-session:

At mid-session, the March corn futures are trading 1 1/4 cents higher at $3.60. March soybean futures are 7 3/4 cents higher at $8.80. 
March wheat futures are trading 4 3/4 cents higher at $4.62. March soymeal futures are $4.80 per short ton higher at $266.80. March soyoil futures are trading $0.42 lower at $31.38.  
In the outside markets, the Brent Crude oil market is $0.51 lower per barrel, the U.S. dollar is higher, and the Dow Jones Industrials are 169 higher.

 

Jack Scoville, The PRICE Futures Group Senior Market Analyst, says that the grain markets are benefitting from a stabilizing financial market.
“Plus, China is back to work today and that seems to have given everything a lift even if they are not big buyers in some of the markets,” Scoville says.
He adds, “Overall, I don’t feel the same panic I felt last week, and that seems to have brought some people back to the long side.  The charts show that markets are holding at more or less support areas, too, another reason to buy all things being equal.”

 

 

Mike

---------

At 11am:

NOPA reports Tuesday that January soybean crush totaled 150.45 million bushels, 7.5% below a year ago and below December's output of 157.0 million bushels.Today's crush number fell below trade expectations, as well.

 

Mike

---------

that At 10:25am:

Farm markets are still up.

Just a side note here, the ethanol industry is meeting this week. Bob Dineeen, RFA President and CEO told a crowd that ethanol exports remain strong. "Dinneen pointed out that in 2015 the U.S. ethanol industry exported 836 million gallons with a value of $1.78 billion and representing 5.7% of domestic ethanol production. He noted that last year’s export number was identical to 2014’s and was tied for the second-highest total on record."

He also reports that reps from Brazil, China, India, Mexico and Peru are attending the meeting in New Orleans.

 

Mike

----------

At the open:

At the open, the March corn futures are trading 2 cents higher at $3.60. March soybean futures are 6 cents higher at $8.79. 
March wheat futures are trading 3 cents higher at $4.60. March soymeal futures are $2.90 per short ton higher at $264.90. March soyoil futures are trading $0.18 lower at $31.62.  
In the outside markets, the Brent Crude oil market is $0.08 higher per barrel, the U.S. dollar is higher, and the Dow Jones Industrials are 132 higher.

 

As we reported yesterday, the ships lining up in Brazil are creating a bid for the markets. But, rallies are still meant to be sold, right now, so gains could be capped. Not a lot of change with fundamentals. The technicals may push up prices, for a bit. Soybean crush numbers are expected this morning and export inspections.

Outside markets are favorable, with the crude oil market stabilizing. The Dollar is stronger, which is not helping.

 

What am I missing? Oh yeah, on Tuesday, private exporters reported to the U.S. Department of Agriculture export sales of 190,000 metric tons of corn for delivery to Colombia during the 2015/2016 marketing year.

The marketing year for corn began Sept. 1.

 

 

Mike

----------

Good morning. 

 

Soybeans and corn are higher this morning on reports that Brazil, as usual, is facing delays at shipping ports. The Brazilians are notorious for delaying shipments to importers, which could benefit the U.S. considering the Chinese are going to be in the market after a two-week hiatus due to the Lunar New Year. Things just got interesting.

  

At 6:15 am:

 

Early calls:

Soybeans 4-6 cents higher, corn 2-4 higher and wheat 2-4 higher. 

 

Trackers:

Overnight soybeans, grains all higher. 

 

Brent Crude Oil = 1% higher.

West Texas Intermediate Crude Oil = 0.8% higher.

Dollar = up 0.7%.

Wall Street = Stock futures higher overnight on rising oil futures. 
World Markets = Global stocks improving as global economic concerns ease.

Advisor
Posts: 3,924
Registered: ‎05-03-2010
0

Re: Floor Talk February 16

Farmer meetings are in full swing. And the ones that I go to are well attended. This one was for landowners and renters. Flexible leases are becoming a hot topic. Do you prefer a flexible lease?

Mike
image.jpg
Honored Advisor
Posts: 5,120
Registered: ‎01-10-2012
0

Re: Floor Talk February 16

Looks to have a very high average age in that picture.

 

Not much under 40 in that group.

Honored Advisor
Posts: 14,018
Registered: ‎05-13-2010
0

Re: Floor Talk February 16

By the picture I`d guess they are mostly landlords?   One dude up front with a ball cap, but a quite a few with the hearing aides from driving a 1466 with a straight pipe, now they drive a Winnebago...just making a sterotypical joke here.   But, I think tenants would be all for a flex leases, it`s the landowners trying to glean some info on it to be as fair as possible in these times of tumult. 

Esteemed Advisor
Posts: 2,332
Registered: ‎04-29-2011

Re: Floor Talk February 16

If you are a producer, just buy the farm and work on a flexible payment plan with your bank.  Problem solved.    Smiley Wink

Veteran Contributor
Posts: 137
Registered: ‎07-05-2011
0

Re: Floor Talk February 16

I kinda fhink my sister in law is in that photo. (blonde hair, white coat and if you know what is good for both of us, don't mix those colors around!) Was your meeting somewhere around Des Moines? She is a sharp lady, I wouldn't be surprised if she was there.

I don't rent any of her land, but I rent some from her and my wife's father on a flex lease. I like the idea of a flex lease, or at least the one we agreed on.

Honored Advisor
Posts: 7,114
Registered: ‎07-18-2011
0

Re: Floor Talk February 16

My friend and I,,,,,

He is a month younger but retired a few years ago.  We rented his farm from he and his brother.  

Cash lease for the first few years.  Through the last several years when it seemed the prices were going to be more volatile and yet we were working through droughts ,,,,, we have been working on a variable lease we have designed together and have been tweeking as we go along.  It has a base cash lease that is favorable to the tennant,, a conservative guarantee, shall we say...

But also has a bonus segment that is basically a computation of a crop share with a price factor, designed to give the owner some additional income when prices and/or production peak over certain values...

 

We haven't reached perfection yet but I am convinced that it is possible to find middle ground between the disconnect of cash leasing and the participation of crop share.... 

Veteran Contributor
Posts: 137
Registered: ‎07-05-2011
0

Re: Floor Talk February 16

Nope, I was wrong. I guess she went to a different meeting. Not my Sister in Law.