03-20-2013 06:56 AM - edited 03-20-2013 03:15 PM
At the close:
The May futures corn contract settled 4 cents higher at $7.32. The May soybean futures contract ended 13 cents higher at $14.19. May wheat futures closed 14 cents higher at $7.36 per bushel. The May soymeal futures finished $2.20 per short ton higher at $413.80. The May soyoil futures closed $0.36 higher at $49.84.
In the outside markets, the NYMEX crude oil is $1.08per barrel higher, the dollar is lower and the Dow Jones Industrials are 65 points higher.
Jeff Coleman, the Trean Group analyst, sums up today's market action. In his own words:
"It was quite an active day on the grain floor as corn, soybeans and wheat all showed upside strength. May corn closed 4 cents to the positive side at 732.5 per bushel. Even though the 4 cent move in the futures market doesn’t seem like much the corn options pit continues to be a good indicator of market sentiment. There was heavy trading in the September and December corn straddles with both the blue (buy) and red (sell) sides of trader’s cards being used. Macquarie continued to buy the at the money September straddle as they have done all week adding another 2000 buys to their position. This would imply that someone at that bank is looking for a big move in the corn market this spring or summer. But today Macquarie had themselves a dancin’ partner. Futures International Group took the other side of the trade by selling 1000 September straddles and 1500 December corn straddles with plenty more offered. The locals mostly were spectators but it was fun to watch! Wheat continued to rally with a 14 cent move to the upside as there is continued talk of wheat being used much more for animal feed. May wheat futures closed at 736 per bushel. Simply put, wheat just became too cheap to corn and that spread has snapped back dramatically. May soybeans climbed 13 cents today to close at 1419.75 with the same old story line coming into play. Brazil just can’t figure out their logistics problems. So, US soybeans don’t look half bad nowadays. The equity markets were tame as the FOMC did what was expected and left their ongoing policies in place," he says.
At the open:
The May futures corn contract is trading 1/2 of cent lower at $7.28. The May soybean futures contract is trading 4cents higher at $14.10. May wheat futures are trading 6 cents higher at $7.28 per bushel. The May soymeal futures are trading $0.10per short ton higher at $411.70. The May soyoil futures are trading $0.12 higher at $49.60.
In the outside markets, the NYMEX crude oil is $0.64per barrel higher, the dollar is lower and the Dow Jones Industrials are 69 points higher.
Jeff Coleman, the Trean Group analyst and CME Group pit trader, says it's a day for the long side.
"The grain markets strong close from yesterday continued into the overnight session as corn, soybeans and wheat futures are all showing gains heading into the opening of the trading floors. Beans are up 9 cents, wheat up 8.5 cents and corn on the positive side by 3 cents. Can we hold these gains? Once again we are hearing about the cold wet weather in the Midwest putting a damper on expectations of early planting and news continues to trickle out about our grain stocks being less than we had thought. Wheat under the $7 level has become attractive to Asia, namely Bangladesh, and the rest of the world. High US fuel prices are keeping ethanol on our minds even as some analysts are calling for a cut in the ethanol mandate. Wednesday looks like an active day for grains mainly from the long side."
Early calls: Corn is seen 2-4 cents higher, soybeans 7-9cents higher, and wheat 9-11 cents higher.
Overnight grain, soybean markets=Trading higher.
Crude Oil=$0.58 per barrel higher.
Wall Street=Seen opening higher, ahead of the Fed statement Wednesday. Also, the Cyprus bank proposal to tax depositers is hanging over the markets.
World=Asia/Pacific stocks were mixed and Europe's stocks were mixed.
More in a minute,
03-20-2013 07:17 AM
Marketeye......I see several news blurbs in the night regarding the 2 MMT soybean cancellations......I note that the beans were to be shipped from April to August....now that is interesting as they are not "late" on delivery at this point.....
Makes a person wonder if there has not been a serious amount of "overbooking" by many of these Chinese buyers, and now they are unwinding as it becomes apparent the bean supply will be ok......
I also wonder if there won't be some deals cut to spread out the supply chain down there...it appears a lot of folks forward sold soybeans but did not lock up a price on the (mostly) truck freight to get the beans to terminals and ports....and that is really hurting them right....so it might be in their best interest to take some kind of haircut on their bean contract to be able to get cheaper freight months into the future....
appears that at some point there is going to have to be more storage "in the country" to absorb these crops, and especially if they want to grow even more in the future.....having the entire trucking fleet in a truck line from the interior to the ports seems pretty unproductive..
but then, we are dealing with a country that has two different railroad guages, right??
03-20-2013 08:27 AM
You are dead-on. I know of one U.S. grain bin company that is making a HUGE investment in Brazil. I have no doubt, you will start to see a lot more on-farm storage in the future. Brazilians will tell you that they can't afford to build the bins. I think, based on the points you make here, they can not afford not to build them. And then guess what's next, after they build the bins..............MARKETING.
03-20-2013 08:39 AM
A good promoter never misses an opportunity.
Mike you might have to expand the Marketing blog. Hang new distribution options, Regional downspouts, Faster scaling and testing, a marketers lounge--------- no wait---- I think Hobby has that covered, maybe Marketing/AG.Com logo's for the bins.............................................
03-20-2013 08:57 AM
Was hauling corn that needs out of here because of a moisture problem and I was finally seeing some serious movement of corn here locally. Never much of a line but steady incoming loads. I think the over $7.50 after the last low 7 thing is generating corn movement.
They are not finding any aflo problem but are still testing every load. One of the employee's was getting quite preturbed over doing the test. (here they grind it, soak it, cook it. takes about 10 minutes)
03-20-2013 09:08 AM
Dang it !!!!!!!!!! Here it's the FIRST day of spring and I have already came up with another of my many brain storm idea's !!!!!!!!!!
All I can see is DOLLAR signs !!!!!!!!!!!!!!!!! This my friends is a great day !
Hobby , Gio , c-x-1 and sw --pack your bags !!!
Let's beat the rush !!!!!!!! We will open up OUR own Marketing news letter down there !!!!!!!!!!!!!!! Just like Brock and the rest of them Geniuses ! We can make millions , just sitting on our azz's !!!! Just look out the window from time to time and print up something !!!!!!!!!!
Oh this is getting better and better ! I can see it now , ECIN --- Marketing for the Pro Farmers of Brazil !!!!!!!!
We can write it in farmers terms , not that BS , forty year old chart stuff that if this line crosses this line then there could be a double negative , double twisting inverse , plain and simple terms , like you dumbazz , you should have sold a month ago ! OR What the F was you thinking ? Our Pro team did not tell you to sell your beans for only 10 bucks , it just said if we had a record crop then it could go low , but if the weather dry's up it could go up !!
Oh chit , this Marketing is getting funer and funer by the minute !
Hey you guy's you need to give this a try !
Well I better get out of here , I got to book my ticket South ! LOL
03-20-2013 09:26 AM
First full day of spring here and
@ 9;20 AM it is 15.8 degrees F
highest temp in the 7 day is a
whooping 40 degrees F, that's 4
on that socialist scale. I couldn't
get the planter in the ground
this morning and with a high
of 33 here today not sure it'll
work any better tomorrow either.
Think I'll check the cold germ
test on the seed again.
I''m thinking you are so politically
incorrect that it just might fly.
BTW it is warmer down there
03-20-2013 09:41 AM - edited 03-20-2013 09:52 AM
ECIN: I Don't believe you will need this...
Most of the "Ex-sperts" out there bought these things up several years ago...