03-15-2012 06:50 AM - edited 03-15-2012 01:28 PM
At the close:
The July corn futures settled 10 1/4 cents higher at $6.69. The July soybean contract closed 18 cents higher at $13.69. The July wheat futures finished 21 cents higher at $6.64. The July soymeal futures settled $4.20 per short ton higher at $371.40. The July soyoil futures closed $0.68 higher at $55.48.
In the outside markets, the NYMEX crude oil is $0.52 per barrel lower, the dollar is lower and the Dow Jones Industrials are up 35 points.
Corn is up 6¢, soybeans are up 14¢, and wheat futures are trading 13¢ higher.
Egypt buys 120,000 mt of U.S. and Canadian wheat.
The July corn futures trade 2 3/4 cents higher at $6.59 1/2. The July soybean contract is trading 15 1/2 cents higher at $13.72. The July wheat futures are trading 7 cents higher at $6.61. The July soymeal futures are trading $2.80 per short ton higher at $371.50. The July soyoil futures are trading $0.45 higher at $55.63.
In the outside markets, the NYMEX crude oil is $1.13 per barrel lower, the dollar is lower and the Dow Jones Industrials are up 21 points.
Here is something that traders are keeping an eye on. Argentina's port strikes are expected to intesify. (full story).
The farm markets are screaming higher! A lot of unknowns remain out there. So, the market is trading bullishness. Yet, I'm hearing that a lot of farmers are having a tough time pulling the trigger, despite being offered decent new-crop corn prices. Are you in that camp? If not, share with us what you have done to help yourself make selling decisions. I'm sure a lot of people would like to hear what decision-making tools are being used.
At the open:
The July corn futures trade 4 cents higher at $6.60 3/4. The July soybean contract is trading 13 cents higher at $13.69. The July wheat futures are trading 4 1/2 cents higher at $6.59. The July soymeal futures are trading $1.50 per short ton higher at $370.20. The July soyoil futures are trading $0.61 higher at $55.78.
In the outside markets, the NYMEX crude oil is $0.12 per barrel higher, the dollar is lower and the Dow Jones Industrials are up 7 points.
USDA releases friendly Weekly Export Sales Thursday for corn and soybean markets:
Corn=836,400 mt, beating the trade's expectations of 700,000 mt.
Soybeans=1.393 mt vs. the trade's expectations of 1.0 mmt.
Wheat=360,300 mt, sharply lower than the trade's expectations of 600,000 mt.
I spoke with a floor trader about the recent grain and stock markets. In her own words:
"I am still trading this market from the long side, until planting risk premiums and South America risk premiums are fully known. The market had been and will be rolling out of May into ? and this may add pressure to spread-trades. So, trade with patience and buy the breaks, she says.
Will the world continue to buy from the U.S. (obviously an anomaly this time of the year) due to SA supply and logistical problems?
The market is transitioning from a "black swan" mentality to the U.S. economy is healthy and stable, relative to the rest of the world. Tuesday night's news of many banks passing stress tests, along with Fed declining to provide any new easing, supports this view.
I think because bond and note markets reacted to ideas of stronger than expected recovery equals a bottoming out of rates, at the very least, with the expectations of possible inflation in the future. If you haven't done so, lock in those adjustable rate mortgages now," she says.
What do you think of her perspective?
Meanwhile, a Dow Jones Newswire story (full story) says Thursday that South Korea feedmillers have imported 2.2 mmt of feedwheat, on annual basis, near a record. At the same time, their corn imports were down 12% in 2011, due to culling of poultry herds and cheaper feedwheat.
Early calls: Corn 5-7 cents higher, soybeans 12-14 cents higher, and wheat 4-5 cents higher.
Overnight grain, soybean markets=Trading higher.
Crude Oil=$0.18 per barrel higher.
Wall Street=Seen trading higher as it eyes U.S. Jobless Claims Report and other economic data.
World Markets=Mostly higher.
More in a minute,
03-15-2012 07:27 AM
It's interesting to note that a grain analyst, this morning, is saying corn prices could be falling to $4.50 after September, but may hit $7.20 first. Are we in for that big of a roller coaster ride? If so, how do you position your risk management plan?
Thanks for sharing,
03-15-2012 07:48 AM
I thought we have inflation now!?!?!? When land goes up 31% that's not inflation? On the $7.20 corn thing the 3 things that have brought corn to $7 before are happening now, China demand, drought in Argentina, and issues with the black sea region supply.
Just so everyone has something else to think about I just hear today that the Nebraska weather people are warning about heavy rains, tornadoes and floods for April.
Can anyway confirm the truth to the story about corn being planted in Illinois this week?
03-15-2012 07:54 AM - edited 03-15-2012 07:54 AM
So far today, I'm gathering information that a floor trader is staying long this market, South America's soybean production continues to fall, peanuts will replace a lot of soybean acres in the Delta, the USDA releases bullish Weekly Export Sales data, and the U.S. Dollar is lower. And it's not even 8-O'clock yet. The bull's pan is overflowing, it seems. What's going on here?
03-15-2012 08:18 AM
03-15-2012 08:24 AM
Mike, As the saying goes....."You have to keep feeding the bull." I guess you are doing that this morning!
I also want to say thank you for what you do for this site....your work does not go unseen!
03-15-2012 08:29 AM
Welcome! It's a great day to plant sweet corn. I wish it was a great day to pick sweet corn. A little salt and a lot of butter on a piping-hot ear of that stuff. Man, that sounds good right now. Plant a row for me and I'll come down and pick it up. What first of June?
Hey, let me thank you for following Marketeye. Thanks for coming out of the shadows. It really isn't that bad out here is it?
I'm glad you weighed in on the Illinois corn planting rumor. I just hope those eager planters don't get burnt by a late frost.
Most of all, I hope you find the information helpful. Don't be a stranger Buckley-HF. Good luck this year!
By the way, how much anhydrous are you putting on this year? And what do you think you're plant population will run?
03-15-2012 08:33 AM - edited 03-15-2012 08:34 AM
I do thank you for the kind words. I hope you can gain from something mentioned here, daily. Well you do have to feed that bull. But, I just started thinking about all of this bullish news out there today. Now tomorrow could be different. Of course, it's all a matter of how we close not open, according to longtime traders.
03-15-2012 09:41 AM
I'm watching something on line, the guy is trying to sell me something but he claims that major elements, commodities, and oils are set to have exceptional gains. He's not saying when or for how long, all hes saying is in the short and medium term.
I guess don't take my word for it, but I thought I'd throw this out there since there was talk of inflation earlier.