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Community Manager
marketeye
Posts: 2,892
Registered: ‎05-03-2010
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Floor Talk November 15

[ Edited ]

NOTICE:  Dan Looker, Agriculture.com Business Editor, spells out how the EPA announcement of capping ethanol production at 13.0 billion gallons impacts both sides of the issue.

 

Full Story: Big oil wins round one of RFS

 

Sidenote: One market analyst sees little market reaction to this announcement, considering it is the announcement that many believe it will be; less corn used for ethanol. He says the EPA's perspective has been in the news for a few months, since that document was leaked. So, he sees a lot of other bearish factors keeping the corn market down.

 

Mike

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At the close:

The Dec. corn futures contract closed 4 1/2 cents lower at $4.22. The Nov. soybean futures contract finished 33 cents lower at $12.80. Dec. wheat futures finished 1/4 of a cent lower at $6.44 1/2 per bushel. The Dec. soymeal futures contract ended $14.10 per short ton lower at $410.50. The Dec. soyoil futures closed $0.50 lower at $40.47.
In the outside markets, the NYMEX crude oil is $0.05 per barrel lower, the dollar is lower and the Dow Jones Industrials are 71 points higher.

 

Mike

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At mid-session:

The Dec. corn futures contract is trading 1 1/4 cents lower at $4.25. The Nov. soybean futures contract is trading 25 1/2 cents lower at $12.88. Dec. wheat futures are 1 1/4 cent higher at $6.46 per bushel. The Dec. soymeal futures contract is trading $10.40 per short ton lower at $414.20. The Dec. soyoil futures are trading $0.26 lower at $40.71.
In the outside markets, the NYMEX crude oil is $0.05 per barrel lower, the dollar is lower and the Dow Jones Industrials are 43 points higher.

 

One analyst says, "We are closing out a week that came into the day with a 17 ½ cent gain.  However, cooperative planting weather in South America is allowing for further advancement of what will be a record planting.  This, in combination with a chart that is technically overbought after the expiration of the November contract has allowed funds to take profits going into what may be the final weekend for soybean harvest.  Active U.S. producer selling in combination with lesser than expected weekly export sales is also bringing some weight to the market.  Corn has  nearly opposite storylines.  Better than expected exports coupled with an already heavy short position have allowed corn to stabilize while harvest continues to progress.  India…been a long time, don’t have any data to say specifically," he says.

 

Mike

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At the open:

The Dec. corn futures contract is trading 1 cent higher at $4.27 1/2. The Nov. soybean futures contract is trading 5 1/2 cents lower at $13.08. Dec. wheat futures are 1/4 of a cent higher at $6.45 per bushel. The Dec. soymeal futures contract is trading $2.10 per short ton lower at $422.50. The Dec. soyoil futures are trading $0.09 higher at $41.06.
In the outside markets, the NYMEX crude oil is $0.17 per barrel higher, the dollar is lower and the Dow Jones Industrials are 11 points higher.

 

Mike

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At 7:30am:

USDA Weekly Export Sales Report:

 

Corn= 1.20 million metric tons, compared with the trade's expectations of 600,000 to 1.2 million metric tons.

 

Soybeans=  909,100 metric tons vs. the trade's expectations of 700,000 to 1.3 mmt.

 

Wheat=  288,700 metric tons vs, the trade's expectations of 300,000-650,000 mt.

 

 

Mike

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At 7:25am:

Early calls: Corn is seen mixed, soybeans 3-5 cents lower, and wheat mixed.

Trackers:
Overnight grain, soybean markets=Trading mixed.
Crude Oil=$0.27 per barrel lower.
Dollar=Higher.

Wall Street=Seen higher, ahead of a bucket full of economic reports.

World Markets=Asia/Pacific stocks were higher, Europe stocks higher.

 


More in a minute,

 

Mike

Community Manager
marketeye
Posts: 2,892
Registered: ‎05-03-2010
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Re: Floor Talk November 15

Good news for U.S. Agriculture:

USDA Secretary released this statement about U.S. Ag exports.

 

USDA today released its final tally for agricultural exports in Fiscal Year 2013, showing a new record of $140.9 billion. Agriculture Secretary Tom Vilsack made the following statement on this news:

"American agriculture achieved record exports once again in Fiscal Year 2013, and the period 2009-2013 stands as the strongest five-year period for agricultural exports in our nation’s history.

Senior Advisor
Hobbyfarmer
Posts: 3,323
Registered: ‎01-10-2012
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Re: Floor Talk November 15

With wheat, corn and beans at historic $ numbers might take a while to best the #'s even if the dollar has been severly devalued in that time frame. Remember QE? = more $ for the same goods and services.

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
Palouser
Posts: 1,974
Registered: ‎05-13-2010
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Re: Floor Talk November 15

The corn crop in Brazil should be smaller at these prices. Just too much cost to ship to ports.

 

Corn could be affected by lower bean prices in the future but the beans seem to be soaked up by demand so far.

 

On the other hand, virtually all of China's corn needs are coming from the US.