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Veteran Advisor

Floor Talk, April 1, 2020

At the close:

At the close, the May corn futures finished 6¢ lower at $3.34 3/4. July corn futures ended 7 1/4¢ lower at $3.38 1/4.

May soybean futures closed 23 1/4¢ lower at $8.62 3/4. July soybean futures closed 22¢ lower at $8.67 1/4.

May wheat futures finished 18 1/2¢ lower at $5.50 1/4.


May soymeal futures closed $6.60 per short ton lower at $314.90.

 May soy oil futures closed $0.96 cents lower at 26.05¢ per pound.



In the outside markets, the NYMEX crude oil market is $0.46 per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 873 points lower.

 

Mike

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At midsession:

At midsession, the May corn futures are 4 1/2¢ lower at $3.36 3/4. July corn futures are 6¢ lower at $3.40 1/4.

May soybean futures are 22¢ lower at $8.63. July soybean futures are 21¢ lower at $8.68.

May wheat futures are 17 3/4¢ lower at $5.51.


May soymeal futures are $5.30 per short ton lower at $316.20. 

May soy oil futures are $1.10 cents lower at 25.90¢ per pound.



In the outside markets, the NYMEX crude oil market is $0.21 per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 681 points lower.

Britt O'Connell, Cash Advisor for Commodity Risk Management Group, says that it is impressive how the new crop corn futures have held up despite the surprising 97 million acres that the USDA estimates the U.S. farmers to plant for 2020.

“We are having a rather violent yet quiet game of tug of war between corn and soybeans. Corn having a hard time moving lower and soybeans having a hard time moving higher, despite each's desire and pull in that direction," O'Connell says.

With soybean acreage estimates coming in shy of the trade guess at 83.5 million, both corn and soybean markets are also seeing some support for the quarterly stocks report, she says.

"Both of these estimates were on the lower end of the spectrum. The corn number is of particular interest. We've felt for awhile that we could see revisions higher on the corn balance sheet from feed demand. This is two fold. Cattle placements into the feedlot were very high this winter, indicating that demand should be strong. The other piece of this is while the USDA will likely not change 2019 acres or yield, it would show changes in demand. Feed is a natural place for this to happen," O'Connell says.

Mike

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At 8:45am:

In early trading, the May corn futures are 3 1/2¢ lower at $3.37 3/4. July corn futures are 4¢ lower at $3.42 1/4.

May soybean futures are 12¢ lower at $8.73. July soybean futures are 13¢ lower at $8.76.

May wheat futures are 7¢ lower at $5.61.


May soymeal futures are $3.20 per short ton lower at $318.30. 

May soy oil futures are $0.54 cents lower at 26.47¢ per pound.



In the outside markets, the NYMEX crude oil market is $0.06 per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 873 points lower.

Al Kluis, Kluis Advisors, says that it is always worth noting when a bearish report does not push prices lower. That is what happened yesterday, in corn.

"Corn traders are patiently waiting to see the weekly energy inventory reports that are released every Wednesday morning. Anything relating to RBOB gasoline demand will be closely monitored for coming months," Kluis told customers in a daily note.

Kluis added, "The USDA report on Tuesday had a few surprises: More corn, less soybeans. Prospective Plantings for corn was reported at 97 million acres (trade prediction was 94.3), while soybean acres were reported at 83.5 million acres (trade prediction was 84.8). Corn and soybean acres combined at 180.5 million acres is a record. It was surprising to see corn end the session down 1 to 2 cents while soybeans were up 2 to 3 cents at the close. The USDA numbers should have produced a bigger reaction in the grains."

Mike

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Veteran Contributor

Re: Floor Talk, April 1, 2020

Another lie by the usda,another dumb article by chuck abbott. The idiot traders know damn well the yield report from 2019 is false cause usda never accounted for pp acres. Farmer's won't make on these prices it's not possible.

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Veteran Advisor

Re: 97 M acres and market hardly moves. I can tell you why, just face it....

97 M acres and the market hardly moves.  I can tell you why just face it, it's trump's "just a little flu" and the idea of 240,000 dead.

  Why worry about planting when you don't how many you're planting for or even if you're going to be here to plant at all.

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