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Community Manager
marketeye
Posts: 3,182
Registered: ‎05-03-2010
0

Floor Talk February 27

[ Edited ]

At the close:

The March futures corn contract settled up 4 cents at $7.09. The March soybean futures contract settled 9 cents higher at $14.57. March wheat futures finished 1 cent lower at $7.04 per bushel. The March soyoil futures contract finished $0.45 higher at $49.27. The March soymeal futures are trading $1.60 per short ton higher at $429.30


In the outside markets, the NYMEX crude oil is $0.18 per barrel higher, the dollar is lower and the Dow Jones Industrials are 175 points higher.

 

Jeff Coleman, the Trean Group, wraps up the market for us. In his own words:

"It was a relatively active day trading session for the grain complex. Wheat got things started by opening unchanged and then rallying 12.25 cents throughout the day, on speculation of more wheat being used for feed at these cheap prices. Corn remained mostly unchanged during the day, as volatility softened in the front month options but rose slightly in the back months. Decent call buying in the Dec13 contract kept the pit active most of the day. Soybeans finally finished up on the day, as profit taking came into the market after a four-day slide. Later in the day, wheat gave up the rally as news of losses in the Russian wheat crop appear to be not as great as once thought. The March wheat/corn went to 10 cents (wheat over) and then went negative, as wheat fell back to unchanged on the day. Corn held firm against wheat and beans maintained their up move as well to close up 7.75 cents on the day. Also, the May/July corn spread continues to widen, as fears that short supplies of old crop will lead to a corn market squeeze before the new crop is even planted.  The spread was 3 cents two weeks ago and today traded 15.5 cents (May over)," he says.

 

Mike

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At mid-session:

The March futures corn contract is 4 cents higher at $7.09. The March soybean futures contract is 6 cents higher at $14.54. March wheat futures are trading 8 cents higher at $7.14 per bushel. The March soyoil futures contract is trading$0.01 higher at $49.03. The March soymeal futures are trading $2.80 per short ton higher at $430.50


In the outside markets, the NYMEX crude oil is $0.13 per barrel lower, the dollar is lower and the Dow Jones Industrials are 71 points higher.

 

One analyst says the soybean market is weighing bullish and bearish news, with the bulls winning out.
"It's a battle between tight supplies and the export buying Wednesday vs harvest progress in Brazil and worries that China or whomever could cancel the purchases at any time," he says. 
He adds, "So you see both sides of unchanged. Spreads firm on tight supplies and the sales reports. Mostly specs both sides I think, my producer and commercials have been quiet today."
Wheat and corn markets are about corn being extremely tight and demand shifting to wheat for feed in the U.S., he says. 
"Plus, some optional origin stuff got done in wheat yesterday.  I got mostly spec buying there buy my commercial types have been interested in buying too," he says.

 

Mike

-----------

At the open:

The March futures corn contract opened 3 cents higher at $7.08. The March soybean futures contract opened 9 cents higher at $14.57. March wheat futures opened 8 cents higher at $7.14per bushel. The March soyoil futures contract opened $0.18 higher at $49.20. The March soymeal futures are trading $3.50 per short ton higher at $431.20


In the outside markets, the NYMEX crude oil is $0.13per barrel lower, the dollar is lower and the Dow Jones Industrials are 71 points higher.

 

Mike

-------------

At 8am:

--USDA announces Wednesday that China bought 120,000 tons of U.S. soybeans for 2013-14 delivery.

--USDA announces Wednesday that an 'unknown' bought 120,000 tons of U.S. soybeans for 2012-13 delivery.

 

Mike

------------

At 7:30am: 

Early calls:  Corn is seen 1-2 cents higher, soybeans 5-7 cents higher, and wheat 3-5 cents higher.

 

Trackers:
Overnight grain, soybean markets=Trading higher.
Crude Oil=$0.05per barrel higher
Dollar=Lower. 
Wall Street=Seen opening higher, with Goods Orders report and Home Sales Report due out Wednesday.

World=Asia/Pacific stocks were higher and Europe's stocks were higher.

 

Jeff Coleman, CME Group pit trader and analyst for the Trean Group says the market may be looking at a 'dead cat bounce'.

 

Is this another “dead cat bounce” that will collapse once the day session begins? Wheat was also up 7 cents extending the rally from yesterday. Corn was unchanged holding onto its gains from yesterday’s trading session. The grains seem to be in a holding pattern with not much happening to move this market until the USDA crop production and supply and demand report coming out March 8th. The equity markets should be active today as Ben Bernanke wraps up his two days of testimony before congress. Durable goods figures come out at 8:30 AM ET and new home sales numbers are released at 10:00 AM ET as well. And who can forget about the upcoming March 1st deadline to figure out the sequestration mess," he asks.

 

 

 

More in a minute,

 

 

Mike

Esteemed Advisor
sw363535
Posts: 4,668
Registered: ‎07-18-2011
0

Re: Floor Talk February 27

That is a pretty small dead cat bounce----------------- you post it and poof ------------- it's gone.   

 

I almost missed the rally

sw
Community Manager
marketeye
Posts: 3,182
Registered: ‎05-03-2010
0

Re: Floor Talk February 27

sw,

 

The U.S. soybean supply gets even tighter this morning. Another big order of U.S. soybeans go out the door.

 

Mike

Esteemed Advisor
Hobbyfarmer
Posts: 4,034
Registered: ‎01-10-2012
0

Re: Floor Talk February 27

Does a dead cat also have 9 lives (bounces)?

60% of the time, it works every time.

"Political correctness is a doctrine, fostered by a delusional, illogical minority, and promoted by mainstream media, which holds forth the proposition that it is entirely possible to pick up a piece of dung by the clean end."
Advisor
giolucas
Posts: 1,129
Registered: ‎06-25-2010
0

Re: Floor Talk February 27

We have had better dead cat bounces on the downside, I mean alive cat bounces on the downside!!!

Esteemed Advisor
sw363535
Posts: 4,668
Registered: ‎07-18-2011
0

Re: Floor Talk February 27

Thanks Mike,

 

I was poking the cat too early.  Probably a mutual coffee moment.

 

Thanks for the bean alert.

sw
Contributor
vzapletin
Posts: 12
Registered: ‎01-14-2013
0

Re: Floor Talk February 27

Mike,

 

Did you see the  weekly ethanol numbers?

 

Rgrds,

 

Vlad

Veteran Advisor
c-x-1
Posts: 3,257
Registered: ‎06-26-2012
0

Re: Floor Talk February 27

I detect a slight pulse in the cat

Senior Advisor
ECIN
Posts: 2,066
Registered: ‎10-17-2012
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Re: Floor Talk February 27

vzapletin , Sorry here , But Mike only works from 7:30 to 9:30 and then from 2 to 3:15 in the afternoon , But I did see that the Grind was 812 up 15,000 and the Stocks were 19.37 million .

Veteran Advisor
c-x-1
Posts: 3,257
Registered: ‎06-26-2012
0

Re: Floor Talk February 27

[ Edited ]

ECIN,

 

Mike is having to adjust to a "space" environment during these"mid-day" hours.....again, we appreciate your timely "on call" readiness and willingness to cover!

 

c-x-1