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Community Manager
marketeye
Posts: 3,178
Registered: ‎05-03-2010
0

Floor Talk January 9

[ Edited ]

At the close:

The March futures corn contract settled 4 cents higher at $6.93. The Jan. soybean futures contract finished 1/2 of a cent lower at $13.86. March wheat futures finished 5 cents lower at $7.45 per bushel. The Jan. soyoil futures contract finished $0.11 higher at $49.64. The January soymeal futures finished $1.30 per short ton lower at $409.60.  


In the outside markets, the NYMEX crude oil is $0.09 per barrel lower, the dollar is higher and the Dow Jones Industrials are 35 points higher.

 

Mike

----------

At mid-day:

The March futures corn contract is trading 3 cents higher at $6.91. The Jan. soybean futures contract is trading 3 cents higher at $14.17. March wheat futures are trading 3 cents lower at $7.47 per bushel. The Jan. soyoil futures contract is trading $0.11 higher at $49.25. The January soymeal futures are trading $1.50 per short ton lower at $409.10.  


In the outside markets, the NYMEX crude oil is $0.21 per barrel lower, the dollar is higher and the Dow Jones Industrials are 48 points higher.

 

Mike

----------

At the open:

The March futures corn contract is trading 4 cents higher at $6.92. The Jan. soybean futures contract is trading 9 cents higher at $14.23. March wheat futures are trading 3 cents higher at $7.53 per bushel. The Jan. soyoil futures contract is trading $0.25 higher at $49.39. The January soymeal futures are trading $0.10 per short ton at $410.70.  


In the outside markets, the NYMEX crude oil is $0.41 per barrel higher, the dollar is higher and the Dow Jones Industrials are 77 points higher.

 

Mike

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

At 8am:

 

--USDA announces that 120,000 tons of soybeans was sold to China, with an optional origin clause.

 

Mike

--------

At 7:00am:

Early calls:  Corn is seen 2-4 cents higher, soybeans 4-6 cents lower, and wheat 1-2 cents higher.

 

Trackers:
Overnight grain, soybean markets=Trading mostly higher.
Crude Oil=$0.16 per barrel lower.
Dollar=Higher.
Wall Street=Seen opening mixed , as investors digest more company earnings. Alcoa beat the street Tuesday.

World=Asia/Pacific stocks are mostly higher, and Europe's stocks are higher.

 

 

 

More in a minute,

 

 

Mike

Advisor
giolucas
Posts: 1,124
Registered: ‎06-25-2010
0

Re: Floor Talk January 9

Mike,

 

What does that mean Optional Origin Clause?   Is that the right to Cancel later, if they want???

 

Community Manager
marketeye
Posts: 3,178
Registered: ‎05-03-2010
0

Re: Floor Talk January 9

giolucas,

 

The buyer has the option to have the order filled with U.S. or some other country's beans.

Advisor
Faust100F
Posts: 831
Registered: ‎11-09-2010

Re: Floor Talk January 9

WTF!!!!!!    then it REALLY WASN'T A SALE was it????????  This is the kind of crap, that needs to be stopped. If it is not American Grain then why are we talking about it!    China is a joke . . . I do not even know why the comic book crew (Larry, Moe, and Curley) even post crap like this for speculators, gamblers, and commission houses to puff up!  When there is absolutely no value to any sale with China unless they have deposited the money for the Letter of Credit in a US Bank in the name of a US Grain Company.  Adios Amigo's.   John

Veteran Contributor
nitefarm
Posts: 117
Registered: ‎05-09-2010
0

Re: Floor Talk January 9

I think it is posted to help track total sales and where they go.

Senior Contributor
highyields
Posts: 792
Registered: ‎06-04-2010
0

Re: Floor Talk January 9

Even if China buys beans from South America, she isn't out of the market,, you want to see bean sales to china and you want them to at least stay steady.  

 

The US has price themselves out of alot of export markets,  that is what a drought was going to do, no supply there can't be much demand,  people use to  say "short crop long tail",    

As much as its no good to be on the short end of the stick US farmers right now are on the short end of the stick.  

 

Long term you just as well get use to this since the US has price themselves out of alot of export markets.   

 

 

Senior Contributor
highyields
Posts: 792
Registered: ‎06-04-2010
0

Re: Floor Talk January 9

Read this on the Bloomberg website, maybe you all have seen this. 

 

 

http://www.bloomberg.com/news/2013-01-09/u-s-drought-persisting-seen-as-threat-to-corn-soybean-crops...

 

 

 

Advisor
giolucas
Posts: 1,124
Registered: ‎06-25-2010
0

Re: Floor Talk January 9

What gets me is that we had a Historic Drought and we still had great production this year.   What is that??????

Esteemed Advisor
Hobbyfarmer
Posts: 4,017
Registered: ‎01-10-2012

Re: Floor Talk January 9

[ Edited ]

HY: I am going to have to call BS on that out of the market thing. If we were $5 a bu cheaper than where we are right now we would still be "Too High".

 

The second tier suppliers will always be cheaper than us till they have absolutly none to sell. They have NO choice but to be cheaper as they have to have the sales too. They also have inventory that they can not use themselves = sell it.

 

Ours are at the price they are today BECAUSE somebody is willing to pay that price. They are not set by us producers.

 

As a producer of feed grains all I get is what someone is willing to pay. If our domestic market is higher than world prices then that is the buyer that gets the goods. We are in a free market condition at these prices, not like a few years ago with LDP'S etc.

 

If you check internal Brazil prices on soys for instance two weeks ago they were in the $18+ range. Do you really think they were selling any into the open market @ 14 something? Just to get the sale and be a nice guy.  We were cheaper at that time.

 

Now they are just starting on a world record harvest with already 50% presold. They will have a glut of beans to deal with. Capitalism 101 says the price will go down to clear the inventory. The only good news as a producer is that the world started with empty grain bins.

 

Check out basis levels in SW Ks, OK & Tx panhandle region for corn =  at least +80 and picked up from the farm frieght paid. Why would a producer of corn sell into a lesser market?

 

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

Re: Floor Talk January 9

giolucas,

my understanding is corn production was/is quite poor (2012-2013).

      soybeans are a different story - production turned out better than thought, say, in July b/c the Aug rains covered enough in eastern areas to revive them. my understanding is the soybean is such a hearty specimen that if it's not dead come Aug 1 and rain comes during/after reproduction it can really "come alive" again.