03-05-2013 07:12 AM - edited 03-05-2013 02:49 PM
Pardon me while I opine. Grab your morning coffee and sit and enjoy: Market 'shoes' to drop
At the close:
The May futures corn contract closed 5 cents higher at $7.09. The May soybean futures contract ended 4 cents higher at $14.66. May wheat futures ended 3 cents higher at $7.06 per bushel. The May soyoil futures contract settled $0.13 lower at $50.13. The May soymeal futures finished $2.20 per short ton higher at $435.90.
In the outside markets, the NYMEX crude oil is $0.63 per barrel higher, the dollar is lower and the Dow Jones Industrials are 138 points higher.
The May futures corn contract is trading 4 cents higher at $7.30. The May soybean futures contract is trading 7 cents higher at $14.69. May wheat futures are trading 1 cent higher at $7.04 per bushel. The May soyoil futures contract is trading $0.10 higher at $50.36. The May soymeal futures are trading $2.00 per short ton higher at $435.70.
In the outside markets, the NYMEX crude oil is $0.17 per barrel higher, the dollar is higher and the Dow Jones Industrials are 147 points higher.
One analyst says, "I think soybeans are reacting to the big purchase that was confirmed today. I think we now know why beans rallied so much yesterday, too. It is Brazil and the logistics. I thinkI saw today that they exported like 900,000 tons of soybeans in February, from 1.6 million last year. We do not have that much to sell and so they are pushing flat price and spreads today and they should. Corn and Wheat are along for the ride, although everything is kind of giving back now. Might be some cash movement although not hearing of any. Overall prices should hold firm today although we might have seen the highs. I think spreads will be a big feature moving forward as flat price is already pretty high."
At the open:
The Mayfutures corn contract opened 4 cents higher at $7.07. The May soybean futures contract opened 16 cents higher at $14.78. Maywheat futures opened 2 cents lower at $7.04 per bushel. The May soyoil futures contract opened $0.42 higher at $50.67. The May soymeal futures are trading $3.70 per short ton higher at $437.40.
In the outside markets, the NYMEX crude oil is $0.35per barrel lower, the dollar is higher and the Dow Jones Industrials are 124 points higher.
Here's how Jeff Coleman, The Trean Group analyst and CME Group pit trader sees today's markets:
"Once again, grains were basically inactive overnight. Corn and wheat were unchanged but soybeans gained roughly five cents extending yesterday’s strong closing rally. After hearing for the last two weeks that China was working hard to slow down economic growth, now comes word that China will maintain its growth target and increase its fiscal by ten percent. Stocks and commodities both derived strength from this news as well as confidence that European finance chiefs will commit to giving Ireland and Portugal more time to repay their bail out loans. This news from Europe comes two days before a very important ECB meeting. What will Mario Draghi say next? How are things really in Europe? The U.S. stock market seems to dominate the economic landscape as the Dow Jones flirts with record levels. Certainly a flight to quality is happening but this stock market rally seems surreal. Are people (investors) truly excited to take part in this movement? Most economic news seems so negative but I guess we have the fed to provide a security blanket for the time being. Close your eyes, jump in and pray," he says.
--USDA announced Tuesday that China bought 345,000 tons of U.S. soybeans for 2013-14 delivery.
--USDA announces that an 'unkown' bought 300,000 tons of U.S. soybeans for 2012-13 delivery.
Holy Cow!!! 645,000 tons of beans in a one-time sale! Not shabby business. The U.S. bean store is getting really short of product, isn't it?
Early calls: Corn is seen 1-2 cents higher, soybeans 2-4 cents higher, and wheat mixed.
Overnight grain, soybean markets=Trading mostly higher.
Crude Oil=$0.21 per barrel higher.
Wall Street=Seen opening higher, following global stocks higher. With a close above 14,164, the Dow can set a new record-high. Today's reports include the retail sales index and Feb. non-manufacturing data.
World=Asia/Pacific stocks were higher and Europe's stocks were higher.
More in a minute,
03-05-2013 07:26 AM - edited 03-05-2013 07:35 AM
The clock is ticking for farmers in Mato Grosso, Brazil. So far, they haven't been able to ship the soybean crop of 24 million tons because all the country's ports are very busy. Soybeans are keeping almost all storage full. Therefore, these farmers does not know exactly what to do when the corn crop comes.
Due to rough roads in the region, some truckers may take two hours to pass through 16 miles near the capital of Cuiabá. The government has announced that will start doing maintenance of 500 miles, but that would just start in April when the rain season ends in Mato Grosso.
03-05-2013 07:52 AM
Have a major equipment malfunction is those conditions could be interesting --- looks like their highway conditions are lacking and with the size of those rigs they won't be an easy fix ---
03-05-2013 08:31 AM
What are they doing to store the crop till it is shipped? Piles on the ground, big plastic bags, ???
03-05-2013 08:50 AM