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Veteran Advisor
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Registered: ‎05-03-2010
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Floor Talk, April 26, 2019

[ Edited ]

At the close, the May corn futures finished 3 3/4¢ higher at $3.51 3/4. July corn futures ended 4¢ higher at $3.61 1/4.

 



May soybean futures settled 5 1/2¢ lower at $8.53 1/4. July soybean futures ended 5 3/4¢ lower at $8.67.

 

July wheat futures ended 1¢ higher at $4.42.



 

July soymeal futures closed $5.90 short ton lower at $303.70.

July soy oil futures finished $0.10 cent lower at 27.84¢ per pound.


 

In the outside markets, the NYMEX crude oil market is $2.02 lower, the U.S. dollar is lower, and the Dow Jones Industrials are 6 points higher.

 

Britt O’Connell, Commodities Risk Management Group, says that It appears as if the selling has finally dried up.

 

“After amassing a record short position, the funds have either begun to take profit and/or buyers have begun to feel as if corn is a value buy,” O’Connell says.

 

The U.S. and European weather models for the next 7-10 days are in agreement, colder and wetter weather.

 

“As we near the month of May a discussion around planting delays, should they be seen as significant, will gain traction and the attention of the markets,” O’Connell says.

 

O’Connell added, “The soybean market finally starting living in its sobering reality. We simply have a lot of supply and demand has been weak. As we move forward should planting delays materialize, pressure will likely remain on beans. This may cause corn/bean spread to widen. I do think with most farmers flat price sellers and many elevators sub $8 cash at harvest, they will hold on until the last minute to plant corn.”

 

Mike

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At 8:50am:

 

In early trading, the May corn futures are 3 1/4¢ higher at $3.50 3/4. July corn futures are 3 3/4¢ higher at $3.60.



 

May soybean futures are 1 1/2¢ lower at $8.57 3/4. July soybean futures are 1 3/4¢ lower at $8.71.

 

July wheat futures are 1¢ higher at $4.42.



 

July soymeal futures are $1.30 short ton lower at $308.30.

 July soy oil futures are $0.21 cent lower at 27.73¢ per pound.


 

In the outside markets, the NYMEX crude oil market is $0.88 lower, the U.S. dollar is lower, and the Dow Jones Industrials are 54 points lower.

 

 

Mike

Veteran Contributor
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Re: Floor Talk, April 26, 2019

Wow another great week for the farmer huh cant plant but by god keep knocking the prices down fn idiots
Senior Advisor
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Registered: ‎05-20-2010
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Re: Floor Talk, April 26, 2019

Kind of funny, a multi-miilionaire in Chicago, thinking that he knows what farmers will do.........

prevent plant corn is clearly the best option on the table for farmers.....just saying, if it gets close, put em in the shed and let Jack buy back some of that corn they sold that they don't have  :-)    Every farmer I talk to knows this. IF it gets close, which admittedly is weeks away at this point, but the traders assumption that every acre would get planted to corn or beans makes no economic sense for the individual farmer, or for the market in general. Well, its 3pm and I'm sure Jack is off for some 12 year old scotch on Rush Street. :-)

 

On another topic, Cedar Rapids pushed corn bids to 13 over May today. You would think that someone would notice and publish such good news. Strong basis is always a sign of a glut of supply right.....opps....I slipped off the media mantra....

 

Senior Advisor
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Registered: ‎05-20-2010
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Re: Floor Talk, April 26, 2019

Cedar Rapids at 3.63 is quite an inverted market, only bidding 3.46 for June. This normally

happens in a bull market, not a bear collapse that is supposedly caused by a GLUT of

supply. Obviously if your bins are full in Iowa you should deliver some corn and reown it

with a July 350 call. No more downside and the inversion pays for the call.

Senior Contributor
Posts: 2,612
Registered: ‎11-20-2016
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Re: Floor Talk, April 26, 2019

good analysis.....I personally will either plant corn, or go prevent plant on those acres. Looks like a fairly sizable amount of corn acres wont get planted and it is not likely many of them will be switched to soybeans.