01-25-2012 06:38 AM - edited 01-25-2012 02:14 PM
At the close:
The March corn futures settled 4 1/2 cents higher at $6.34 1/2. The March soybean contract ended 6 1/2 cents lower at $12.13 1/2. The March wheat futures closed 7 3/4 cents higher at $6.41 1/4. The March soymeal futures finished $2.40 per short ton lower at $321.10. The March soyoil futures closed $0.04 higher $51.39. In the outside markets, the NYMEX crude oil is $0.72 per barrel higher, the dollar is lower and the Dow Jones Industrials are up 54 points.
One floor trader says, "It's all about the cash markets right now. The market is trading cash markets. Corn is still very strong, exports and ethanol use still good. U.S. carryout/use guesses are coming down," he says.
Although old crop/new crop corn price-spreads show strong inverses as new-crop supply/demand carryout models are very bearish, it's a long time until December, he says.
"The trade still likes long corn, short bean positions, as South America's rains will be more beneficial to soybeans, at this stage."
At mid-session, the March corn futures trade 2 3/4 cents higher at $6.33. The March soybean contract is trading 5 1/2 cents lower at $12.14 1/2. The March wheat futures are trading 7 3/4 cents higher at $6.41 1/4. The March soymeal futures are trading $0.10 per short ton lower at $322.50. The March soyoil futures are trading $0.20 lower $51.15.
In the outside markets, the NYMEX crude oil is $0.15 per barrel higher, the dollar is higher and the Dow Jones Industrials are down 49 points.
"We were lower on some reports of an uptick of farm-selling. Plus, more reports of rains for Arg. The rains are supposed to move to southern Brazil today. The FED announcement broke the US Dollar back a bit and created buying in commodities in general and in grains as well. Volumes on the light side and not as good as yesterday, but better than they have been overall."
At the open:
At the open, the March corn futures trade 3 cents higher at $6.33. The March soybean contract opened 3 cents lower at $12.17. The March wheat futures opened 2 3/4 cents higher at $6.36 1/4. The March soymeal futures opened $1.20 per short ton lower at $322.30. The March soyoil futures opened $0.12 lower $51.22.
In the outside markets, the NYMEX crude oil is $0.96 per barrel lower, the dollar is higher and the Dow Jones Industrials are down 74 points.
Weather schmether!! I'm hearing the corn market is going higher because of technical support and lack of farmer-selling. Cash basis levels are firming, as commercials try to release the farmer's grip on this corn. What say you?
Are you selling or do you see much selling in the neighborhood?
Early calls: Corn 2-4 cents higher, soybeans 1-2 cents higher, and wheat 3-5 cents higher.
Overnight grain, soybean markets=Trading higher.
Crude Oil=$0.87 per barrel lower.
Wall Street=Seen trading mixed as the Fed meets today and is expected to keep interest rates near zero for the next two years.
World Markets=Asia/Pacific stocks trade higher. Europe stocks are lower.
News & Notes:
--Russia's grain exports set to decline dramatically, but domestic grain needs stay high, USDA attache reports Wednesday.
--Japan is seeking 300,000 metric tons of feed wheat from U.S. and other countries.
More in a minute,
01-25-2012 07:26 AM
01-25-2012 07:27 AM
How are they gonna keep rates at zero? And how are they gonna stir investment with a negative return? Soon and very soon this interest thingy will be what bites grain farming in the backside. Did before will again..
Going forward we are in dangerous waters.
01-25-2012 07:49 AM
It's like an economist described recently. If you push a beach ball into the water, the only direction it has to go is up! That is the situation with the interest rate. It only has one way to go now......UP!
I've reported before that farmers are being urged to open up an interest rate savings account. With the nice profits you are seeing recently, you should skim some aside and stuff it away in that interest rate savings account to offset the higher interest rates that will occur when the hand is taken off the beach ball.
01-25-2012 08:12 AM
What was called a “soaker” rainfall yest in Arg , actually covered only 25-30% of the core prod area ( SE Cordoba, NE Buenos Aires and South Santa Fe) with rains of more than 40mm.
in the last 48hrs precipitation varied between 6 and 65 mm in much of the humid pampas giving drought a truce to farmers and slowed the deterioration of soybean crop . Still rains were not able to replenish soil moisture, which has large deficits. Soy will need to receive 100 mm in February and should have another 150 mm to replenish soil moisture as since the campaign began it rained 60% of normal.
Next rains are expected in 10 days from now , feb 3, so in the days before that we may be going back to dance on the brink of disaster.
Looking up north , in BRZ , wet weather seems to prevail in MT further disrupting harvest efforts. Have to keep a very close eye on this….too many uncertainties keep sorrounding our SA final output . Could find good arguments on both ,bull and bears camps ... may be tempting to short yest´s Arg said “soaker” … not so the same on a wet MT which produces almost half of entire Arg…
01-25-2012 08:23 AM
How can they justify keeping interest rates at zero, in my opinion thats like tyring to put a fire out with gasoline.
No corn moving here at all, but the corn around here wasn't that good as I talk to some of the neighbors.
hardly isn't any trucks at the river elevator at Neb. City. local coop is offering free storage if sold by 1st of september.
01-25-2012 10:00 AM
There is some corn moving around here....Most I think is contracted corn for Jan-Feb delivery.
01-25-2012 10:52 AM
Hey, Jed. Thanks for your thoughts regarding our mobile website. It's good to get feedback from you guys. Are you visiting http://m.agriculture.com to access the mobile site? If so, you should see a version designed specifically for the smartphone. From there, we have some nice closing grain market summary videos, an optimized Markets category with commodity prices and charts, and more.
I just want to make sure you're seeing the correct version of the mobile site. I'm always available and happy to answer any other questions you have. That goes for all the other folks here in the group as well.
Thanks again for your comments.