09-26-2012 06:54 AM - edited 09-26-2012 02:27 PM
VIDEO: USDA Report Preview
At the close:
The Dec. futures corn contract settled 19 cents lower at $7.24. Nov. soybean futures contract ended 38 cents lower at $15.73. Dec. wheat futures finished 17 cents lower at $8.69 per bushel. The Dec. soyoil futures contract settled $1.42 lower at $52.11. The Dec. soymeal futures contract finished $11.20 per short ton lower at $476.90.
In the outside markets, the NYMEX crude oil is $1.44 per barrel lower, the dollar is higher and the Dow Jones Industrials are 21 points lower.
The Dec. futures corn contract is trading 18 cents lower at $7.25. Nov. soybean futures contract is trading 42 1/2 cents lower at $15.69. Dec. wheat futures are trading 15 cents lower at $8.71 per bushel. The Dec. soyoil futures contract is trading $1.26 lower at $52.27. The Dec. soymeal futures contract is trading $13.30 per short ton lower at $474.80.
In the outside markets, the NYMEX crude oil is $1.83 per barrel lower, the dollar is unchanged and the Dow Jones Industrials are 27 points lower.
One analyst says, "Worldly protests and a rapid U.S. harvest have the farm markets sharply lower. Dry weather the next seven days looks to speed the harvest pace and talk of better than expected yields have our seasonal post-growing season, harvest pressure time break, right on time, almost equal to last year," he says.
Helping to pressure prices is the selling in stock indicies, metals and energies over rioting in Spain over euro dollar concerns, he says. This has big funds selling just about everything."
At the open:
The Dec. futures corn contract is trading 11 cents lower at $7.32. Nov. soybean futures contract is trading 26 cents lower at $15.85. Dec. wheat futures are trading 11 cents lower at $8.75 per bushel. The Dec. soyoil futures contract is trading $0.75 lower at $52.78. The Dec. soymeal futures contract is trading $8.00 per short ton lower at $480.10.
In the outside markets, the NYMEX crude oil is $1.46 per barrel lower, the dollar is higher and the Dow Jones Industrials are 32 points lower.
Egypt buys 300,000 mt of French and Romanian wheat Wednesday.
--USDA announces that an 'unknown' bought 140,000 mt of U.S. soybeans Wednesday for 2012-13 delivery
--Egypt is looking to buy wheat Wednesday.
--Japan is seeking 320,000 mt of feed barley.
Early calls: Corn 8-10 cents lower, soybeans 20-22 cents lower, and wheat 8-10 cents lower.
Overnight grain, soybean markets=Trading lower.
Crude Oil=$0.69 per barrel lower.
Wall Street=Seen opening flat, as global economic concerns loom and investors await the next 'big' news, following the world's central banks' stimulus announcements.
More in a minute,
09-26-2012 08:20 AM
Why are the markets taking such a beating? Is it harvest pressure, new global economic concerns, or what. It always kills me they say harvest pressure, because we are always going to harvest the crop whether its good or bad. What do they think we are going to leave it out there and not harvest it at all.
09-26-2012 08:27 AM
I think alot of people sell it right out of the field, whether it's $2 or $8, and supplies are readily available this time of year. Plus, corn contracted in the $5's and $6's being delivered.
09-26-2012 09:00 AM
My feeling is that the local basis offer is strong enough for folks to bring the crop to town, now. Combine that with aflatoxin concerns, moisture-ready crops, a few bills to pay (concerns about harvesting enough to fill contracts), and you have a recipe for harvest pressure. Just a thought.
09-26-2012 10:45 AM
This is getting hard on the nerves. Seems like the markets and the board have been taken over by the bears. really nervous abou this report coming up. I have seen this happen before where we drop everyday leading to the report and then really get hammered.. What are the chances this report is very bearish or is there still a chance it could cause this market to reverse and head back up.
09-26-2012 11:13 AM
09-26-2012 11:20 AM
My market info sources tell me that harvest is proceeding at a record pace.
Corn near 40% done and average is 13%
Soys at 22% which is three times the normal pace.
As the crops come to an elevator and are sold, and yes there will always be some that is sold, the elevator protects themselves with a position on CBoT. Hence harvest pressure because lots of 'sales'.
Earlier than normal harvest pressure and maybe getting compounded by end of month positioning by funds?
I am still waiting to sell more so maybe that is a bad sign.
May be waiting for the bottom to sell????
09-27-2012 02:35 AM
I am not an expert by any means, but I can't help but think that the rapid harvest pace is giving the illusion of a larger crop. Also, the trend this year to market grain rather than store on farm is just too confusing for the traders. Little do they realize, those bins won't be full later when they are looking for grains. That should cause a lot of head scratching when they find out they have already consumed this mythical gigantic crop, and Mother Hubbard's cupboard is bare!