09-21-2011 06:29 AM - edited 09-21-2011 02:03 PM
At the close:
The Dec. corn futures settled 4 1/2 cents lower at $6.85 3/4. The Nov. soybean contract settled 17 1/2 cents lower at $13.20 1/2. The Dec. wheat futures closed 8 cents lower at $6.66 3/4. The Dec. soymeal futures ended $6.10 per short ton lower at $344.20. The Dec. soyoil futures closed $0.29 lower at $55.34.
In the outside markets, the NYMEX crude oil is $1.65 per barrel lower, the dollar is higher and the Dow Jones Industrials are down 100 points.
The Fed Reserve announced Wednesday it plans to shift $400 billion to boost economy. Opinions on whether this will provide economic stimulus is being debated. So, I asked a floor trader what this news will do to the commodities. His answer was, "Nothing". So, there you have it. Uncle Ben's news is a yawner for the farm markets, I guess. Do you agree?
The Dec. corn futures are trading 1 3/4 cents higher at $6.92. The Nov. soybean contract is trading 8 cents lower at $13.30. The Dec. wheat futures are trading 1 1/4 cents lower at $6.73 1/2. The Dec. soymeal futures are trading $2.70 per short ton lower at $347.70. The Dec. soyoil futures are trading $0.23 lower at $55.40.
In the outside markets, the NYMEX crude oil is $0.58 per barrel lower, the dollar is lower and the Dow Jones Industrials are down 35 points.
One analyst says, "Beans are taking the selling today. Not sure why beans above all else, but maybe no new export news from China, plus China importing less in August in the data it released today. The other markets are higher. Wheat is too dry in the southern Plains again, but corn must be on some demand starting to show up at these cheaper levels. It is very quiet here, even the specs are waiting until the FOMC release this afternoon. Overall not much change to markets today and I think we stay quiet into the close. Traders are hearing decent initial yields for corn and soybeans, we see if this keeps up as the harvest expands."
As the market awaits harvest reports, I thought I would fire up the camera.
New Yields for September:
Corn harvest has started in Winnebago County, Iowa. A few farmers are reporting 146 bu./acre and 172 bu./acre. This was expected. However, this same area, last year, went 185 bu./acre and 210 bu./acre.
Meanwhile, I caught up with a few Warren County, Iowa farmers yesterday, September 20. One was harvesting corn and the other checking soybean fields. Video of corn harvesting.
Here are a few photos I snapped.
130 pods were counted on this plant. That's right, 130!!! The farmer is holding up just one branch of the plant. The southern Iowa field looks really good right now. The beans will be ready in 10 days, he says.
This southern Iowa farmer says this corn was planted in mid-April. It is reading about 20% moisture. He is in no hurry to get it harvested. But, he wanted to get started. The corn was going through the head nicely, he says. The Gleaner holds about 140 bushels of corn at a time. A few other area farmers had started harvesting corn as well.
The Dec. corn futures opened 3 3/4 cents higher at $6.93 3/4. The Nov. soybean contract opened 1/4 of a cent higher at $13.38.1/2. The Dec. wheat futures opened steady at $6.75 1/4. The Dec. soymeal futures opened $0.50 per short ton higher at $350.80. The Dec. soyoil futures opened $0.30 lower at $55.60.
In the outside markets, the NYMEX crude oil is $0.55 per barrel lower, the dollar is higher and the Dow Jones Industrials are up 1 point.
New Yields for September:
Corn harvest has started in Winnebago County, Iowa. A few farmers are reporting 146 bu./acre and 172 bu./acre. This was expected. However, this same area went 185 bu./acre and 210 bu./acre.
Early calls: Corn is seen 3-5 cents higher, soybeans 3-5 cents higher, and wheat seen 1-2 cents higher.
Overnight grain, soybean markets=Trading higher.
Crude Oil=$0.61 lower.
Wall Street=Seen trading higher ahead of the Fed Reserve's decision on an economic package.
World Markets=Asia/Pacific stocks are higher, while European stocks are lower.
This day of the grain trading week is called 'stupid Wednesday', one analyst says. "This is the day with no reports or really fresh news to trade. So, grains are expected to follow the outside markets. The market is waiting for the September 30th Small Grains Report. And until the October USDA Report, chart patterns could be traded. This time of the year also involves what's known as a 'Harvest uncertainty correction'. Corn could trade in a 35¢ range for the next 2 1/2 weeks, until the arrival of the October Report. Weather-wise, the trade is operating on a weather forecast that calls for drier/warmer conditions for the next 12-14 trading days. A lot of harvesting can get done with those conditions."
More in a minute,
09-21-2011 01:01 PM
It appears that if we would all enter our yields at Agweb, with them updating yields every morning, us farmers would at least get an idea if we need to be more bullish or unload everything this fall. Wish I was started, have some beans that might go end of next week. Corn over 25% and going to let it dry down .
09-21-2011 02:22 PM
Despite the Fed's announcement, some traders see what happens to the U.S. Dollar as more important to farm markets.
One floor trader says, "One of the financial market we are watching more closely is the dollar and the Brazilian REAL… remember when the Dollar rallies it makes it easier for commodity producers in foreign coutries to sell their product..because most commodities are exported in U.S. dollar denominations….so the Brazilian farmer receives more REALS per bushel when the dollar rallies… so a break in the REAL has inoculated the break in beans… the point here is that dollar strength tends to cure enthusiasm for owning commodities like beans and crude petroleum…today for example we hear Brazil sold 1.5 mmt of beans despite the break… to them they are selling beans near highs."