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10-12-2010 07:05 AM - edited 10-12-2010 01:52 PM
Corn and soybeans finish strong!
The Dec corn futures settled 23 1/4 cents higher at $5.79. The Nov. soybean contract closed 26 cents higher at $11.78 1/2. The Dec. wheat futures settled 3/4 of a cent higher at $7.10. The Dec. soyoil futures ended 60 points higher at $46.95. The Dec. soymeal futures contract finished $0.60 higher at $333.10 per short ton.
In the outside markets, the NYMEX crude oil is $0.53 per barrel lower, the dollar is lower, and the Dow Jones Industrials are up 1 point.
The Dec corn futures are 13 1/4 cents higher at $5.69 1/4. The Nov. soybean contract is 16 cents higher at $11.68 3/4. The Dec. wheat futures are 2 1/4 cents higher at $7.11 1/2. The Dec. soyoil futures are 33 points higher at $46.88. The Dec. soymeal futures contract is $0.30 higher at $330.10 per short ton.
In the outside markets, the NYMEX crude oil is $0.48 per barrel lower, the dollar is higher, and the Dow Jones Industrials are down 27 points.
Grain prices stay higher. One analyst says, "Beans were up 24 cents at the high on the overnight before closing up 8 on further talk of planting delays in number two world producer exporter of beans, Brazil. Additionaly, our weekly export inspection report, out just after the open, showed 37.9 million bushels of beans were inspected by the USDA for near-term shipment. This is up from 26 m.b. the week prior, with key world buyer China in for 40% of the total. China wants to book insurance against drought, as planting in Brazil continues into November."
From the 'oh by the way' department: CME Group announces record volumes hit Monday.
For corn futures – Record daily volume of 570,038. Previous record was 556,034 on 9/3/10.
Soybean Futures – Record daily volume of 366,792. Previous record was 294,100 set on 4/1/08.
Soybean Options – Record daily volume of 100,503. Previous record was 89,893 set on 2/29/08.
--Egypt bought 220,000 metric tons of wheat Tuesday. 55,000 from Glencore Int'l, 55,000 Cargill, 55,000 from Abudonkol.
--Japan is tendering for 133,000 metric tons of food wheat for Dec. delivery.
--There's word Argentina and China have settled their soyoil dispute. The bean product should begin flowing into China soon.
--Notice below the comments regarding weak basis levels. A friend called me yesterday and says Mike you tell me about these high futures prices and we're sitting here with -80¢ basis. This is in central Iowa.
At the open:
The Dec corn futures are 2 cents higher at $5.57 3/4. The Nov. soybean contract opened 10 1/2 cents higher at $11.63. The Dec. wheat futures opened 4 1/4 cents lower at $7.05. The Dec. soymeal futures contract opened $1.60 higher at $328.70 per short ton. The Dec. soyoil futures contract opened $0.05 higher at $46.40.
In the outside markets, the NYMEX crude oil is $0.68 per barrel lower, the dollar is higher, and the Dow Jones Industrials are down 61 points.
If you don't get it, I'll tell you what it says. This morning's headline story in the Wall Street Journal reads in big black letters, "Farm Belt Bounces Back". The article says the U.S. Farm Belt is booming. Crop and land prices are up, demand is up, incomes are up, debt is in-check, and the farm economy is coming out of the recession faster than other segments.
What do you think? Is this your story for your farm, your prices, your marketing achievements? I can't wait to hear all of your responses. Thanks for sharing.
Early calls: Corn up 1-2 cents, soybeans up 8-10 cents, and wheat down 2-4 cents.
Overnight grain=Trading mostly higher.
Crude oil=Trading $0.24 per barrel lower.
Wall Street=Seen lower as the dollar firms. Also, six Chinese banks had their reserve levels increased Tuesday, a move seen as negative to market action. The Fed releases minutes of its September meeting today.
10-12-2010 09:22 AM
The cash grain portion of production ag has been in a recession since the 1985 farm bill was passed..... If you ask the livestock sector....... I do not think that they are feeling all that good?........ When you have been in the basement for so long....... When you get up to the ground level you think you have made progress......
Talk to me in a couple of years and I will then tell you if the ag economy has made it out of recession........ p-oed
10-12-2010 10:10 AM
The WSJ story is fairly accurate. Most of my farming days have been spent figuring out how to get a respectable rate of return using gov't. programs, farm enterprise budget analysis and responsible marketing plans. All those years of working hard to get by appear to have put myself in a position where the windfall is now occurring. What I know from the history of US. agriculture is that peaks and valleys occur and we need to understand that we are on the higher ground at the moment. Time for me to get in my new combine and finish the beans. Thank you Mike for your updates.
10-12-2010 10:16 AM
Here in Ontario we are a little dismayed at the constant flow out of the media of how grain prices are skyrocketing and farmers are reaping huge profits. With basis levels at -90 cents for corn, -$1.15 soys and -$2.15 for SRW without the latest rally we where still at or near break even with normal yields. Hopefully in the coming months exports will eat up some of the local supply and basis will improve.
10-12-2010 12:48 PM
Coming off of the fifth year of horrible crops 2010 included, I see daylight at the end of the tunnel. I would say one third of the corn belt is below par crop wise, mostly eastern corn belt. Some storys a custom operator reported 60 bushels not beans corn, beans as low as 25. Planted crops for three months, Today we will run a field planted June 25th, closs to 400 gross. A year ago with that yield a little more than half the gross. This is the first time I feel a little more optomistic in 20 years. In no hurry to price 2011, but sold most of the beans 10.00 and up to now over 11.00. I still say 2011 will catch a lot of farmers off guard concerning IRS. What will we do if we have a good year?
10-12-2010 01:47 PM
llakmak, hopefully the IRS will get some revenue from me this year...just not too much. Planning for next year is interesting. Marketing seems pretty easy right now...just don't sell.
Speaking of the IRS, is there any new tax considerations in the small business bill that was passed that I need to be aware of? Maybe agriculture.com has done an article on this and I missed it.
2010 would have been a very lean year here on the farm had prices not rallied. Of course, I have to sell some before I can say I benefited from the rally. With 2008, 2009, and 2010 I can join the ranks of those with no debt...just not sure with these low interest rates if I should. I have been doing a good job of keeping the guys on the ag equipment production line busy, my own little stimulus program.