03-04-2013 07:29 AM - edited 03-04-2013 02:36 PM
At the close:
The March futures corn contract settled 1 cent lower at $7.23. The March soybean futures contract finished 25 cents higher at $14.90. March wheat futures ended 17 cents lower at $6.96 per bushel. The March soyoil futures contract ended $0.58 higher at $50.05. The March soymeal futures finished $4.90 per short ton higher at $432.20.
In the outside markets, the NYMEX crude oil is $0.90 per barrel lower, the dollar is higher and the Dow Jones Industrials are 34 points higher.
The March futures corn contract is trading 6 cents lower at $7.17. The March soybean futures contract is trading 1 cent lower at $14.63. March wheat futures are trading 16 cents lower at $6.96per bushel. The March soyoil futures contract is trading $0.05 lower at $49.42. The March soymeal futures are trading $3.30 per short ton lower at $424.00.
In the outside markets, the NYMEX crude oil is $0.90 per barrel lower, the dollar is higher and the Dow Jones Industrials are 23 points lower.
One grain analyst says that crop-weather is pressuring the markets.
"Wheat led the way with a 23 cent drop into mid-session. Another snow storm brings badly needed moisture to top soil this week, in the previously drought stricken western and eastern winter wheat states. This is the third week, in a row, of moisture entering to assist wheat. And another system, largely rain, looks to be on the way. The wheat break was so large it pulled corn and beans down with it," he says.
Corn is getting a boost from the fresh export sale, this morning:
--USDA announced that an 'unknown' purchased 100,000 tons of U.S. corn for 2012-13 delivery.
At the open:
The March futures corn contract opened 4 cents higher at $7.28. The March soybean futures contract opened 6 cents higher at $14.70. March wheat futures opened 4 cents lower at $7.08 per bushel. The March soyoil futures contract opened $0.14 higher at $49.61. The March soymeal futures are trading $0.10 per short ton higher at $427.40.
In the outside markets, the NYMEX crude oil is $0.28 per barrel lower, the dollar is higher and the Dow Jones Industrials are 49 points lower.
Tom White, FutureRoad.net analyst and CME Group corn pit trader looks at today's market through a technical lense:
"The market traded from the long side last week, as it was again unable to take out previous lows. The dailies traded back to the 34-period moving average (high+low+close/3); and while there was firming last week, we still haven’t shown momentum on indicators such as RSI which is in a trading range pattern. Gaps are left on both sides of the market in the open outcry charts. Any strength in the early part of the week should test the daily mid-line( Andrews Pitchfork ). If we do continue to show strength in the coming week(s). We’ll also monitor for a possible test of a weekly mid-line. We also should get a move back to 699 at some point during the week," White says.
Early calls: Corn is seen 1-2 cents higher, soybeans 2-4 cents higher, and wheat 1-2 cents lower.
Overnight grain, soybean markets=Trading mostly lower.
Crude Oil=$0.06 per barrel higher.
Wall Street=Seen opening lower, as China reports slow growth.
World=Asia/Pacific stocks were mostly lower and Europe's stocks were mostly lower.
Here's how Jeff Coleman, Trean Group pit trader, sees today's market:
"Grains were slow and steady overnight with wheat sliding a nickel this morning. There just seems to be no buyers for wheat, but we saw this happen last week as well. Wheat became cheap to corn attracting buyers, with the thought that wheat would become a more viable grain additive for animal feed. Will that happen again? You never know. Corn and soybeans were basically unchanged overnight. U.S. equities were under pressure overnight as the Asian markets were down due to the continuing slow down of the Chinese economy. Stocks and commodities seem to be at the mercy of China as the Chinese government works to slow growth in their economy. There are no real economic numbers due out today, but don’t forget that on Friday both unemployment and the U.S.D.A. crop production reports will be released. I guess let’s just take a break from trading today and continue to wonder what our elected leaders in Washington are going to do about our economic situation," he says.
More in a minute,
03-04-2013 07:41 AM
This might be interesting for the market: China announced that will sell its wheat stocks early in the month, according to the Chinese wheat industry website (www.ceral.com.cn). The amount is 1.28 million tons. They also would sell 100,000 tons of rapessed oil. Prices were not released. The domestic price of wheat in China was near a record high.
03-04-2013 11:40 AM
When China auctions reserves into the domestic market they are trying to affect prices and discourage hording. They will replace those reserves in the future. As far as i know I've seldom seen international ripples from these actions.
03-04-2013 01:03 PM
Yes. I'm told the snow, rain, and snow again seems to be giving the market hope of an improved wheat crop, I guess. Wheat is pulling corn and soybeans down? It's unusual, but is being used as a reason for these falling markets.
03-04-2013 01:50 PM - edited 03-04-2013 02:10 PM
So wouldn't it be more honest to just say a precipitation fork was stuck into wheat and wheat has a Stanley's lasso around corn and beans, but then beans found a Timothy trampoline to bounce from?
----forgive my sillyness
03-04-2013 02:13 PM
More people probably understand the markets explained that way than the way I do it. Nice job. It looks like you should be a cartoon writer. Here, what do you think about this bloviating: Market 'shoes' to drop