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02-07-2012 07:12 AM - edited 02-07-2012 02:16 PM
At the close:
The March corn futures settled 2 cents lower at $6.42 1/4. The March soybean contract closed 1 cent lower at $12.32. The March wheat futures ended 6 1/4 cents lower at $6.62 1/4. The March soymeal futures finished $2.10 per short ton lower at $325.20. The March soyoil futures closed $0.01 higher at $52.17.
In the outside markets, the NYMEX crude oil is $1.71 per barrel higher, the dollar is lower and the Dow Jones Industrials are up 43 points.
The March corn futures trade 2 1/2 cents lower at $6.41 3/4. The March soybean contract is trading 1 cent lower at $12.32. The March wheat futures are trading 5 cents lower at $6.63 1/2. The March soymeal futures are trading $2.30 per short ton lower at $325.20. The March soyoil futures are trading $0.12 higher at $52.28.
In the outside markets, the NYMEX crude oil is $1.64 per barrel higher, the dollar is lower and the Dow Jones Industrials are up 31 points.
One floor trader says the market is weak because there is just no fresh news. "A higher crude oil market is stopping steeper losses for corn. You hear more estimates of Argentina's corn is 22.0 mmt. Well, that is above everybody's number. Ethanol stocks are building, we hear. For soybeans, I'm confused. I think there will be an announcement soon that China is buying our soybeans," he says.
One analyst describes today's markets like this; "Outside markets are strong but grains remain lower as they have exhausted the pre-report rally with a 56 cent rally in corn and 90 cent bean rally the last three weeks with the highs occurring Monday. Funds await the USDA report results Thursday, before any further commitment to positions."
At the open:
In early trading, the March corn futures trade 3 1/2 cents lower at $6.40 3/4. The March soybean contract is trading unchanged at $12.33. The March wheat futures are trading 9 1/4 cents lower at $6.59 1/2. The March soymeal futures are trading $1.30 per short ton lower at $326.20. The March soyoil futures are trading $0.07 higher at $52.23.
In the outside markets, the NYMEX crude oil is $1.46 per barrel higher, the dollar is lower and the Dow Jones Industrials are up 29 points.
Amongst analysts, there seems to be a lot of talk about U.S. export concern. First, with negative crush margins in China, that country is less likely to be buying soybeans. Secondly, the U.S. Dollar is rising due to Greece debt drama. And the biggie is this talk that Iraq tendered for wheat from some other origin other than the U.S. Not sure why, but all of the sudden, weak export talk is ruling this morning's market analysis.
Having said that, here is a rundown of export news this morning:
--USDA says 20,000 mt of U.S. soy oil was sold to Morocco for 2011-12 delivery.
--Japan bought 98,552 mt of milling wheat from U.S. and Canada. Mostly from the U.S.
--Paraguay's 2011-12 corn crop has suffered 58% losses, due to drought. Still, that country is expected to raise a record corn crop this year, due to expanded area.
Early calls: Corn 2-4 cents lower, soybeans 3-5 cents lower, and wheat 9-11 cents lower.
Overnight grain, soybean markets=Trading lower.
Crude Oil=$0.84 per barrel lower.
Wall Street=Seen trading lower as investors worry about Greece's debt situation. Fed Chairman Ben Bernanke testifies in front of a Senate Budget Committee.
World Markets=Asia/Pacific stocks trade mixed. Europe stocks are lower.
More in a minute,
02-07-2012 08:49 AM
The Financial Times is quoting the International Monetary Fund Tuesday, regarding Europe's debt impact on China. Essentially, if Europe's debe crisis spreads further, China's economic growth could be cut in half. That is not very good news for ag commodities. Greece's debt drama has taken center stage Tuesday.