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Veteran Contributor

Floor Talk April 7

After the close:

The funds bought 10,000 corn contracts today. Wow!

 

 

Mike

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At the close:

At the close, the May corn futures settlred 3 1/2 cents higher at $3.61 1/2. May soybean futures ended 3 1/2 cents lower at $9.04. May wheat futures closed 6 cents lower at $4.57. May soymeal futures settled $1.10 short ton lower at $266.80. May soyoil futures closed $0.16 lower at $34.10.  In the outside markets, the Brent crude oil market is $0.72 per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 187 points lower.

 

Mike

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At mid-session:

At mid-session, the May corn futures are 2 3/4 cents higher at $3.60 3/4. May soybean futures are 2 1/2 cents lower at $9.05. May wheat futures are 3 cents lower at $4.60. May soymeal futures trade $0.60 short ton lower at $269.90. May soyoil futures are $0.20 lower at $34.06.  In the outside markets, the Brent crude oil market is $0.90 per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 155 points lower.

 

Matt Pierce, Futures International LLC, grain trader on the CME Group's floor, says that overall the market is quiet.

"Many traders are waiting to see what happens with "Goldman Roll" (Goldman Sachs) period officially starting today. It could help corn spreads rally while add pressure to bean oil and bean spreads," Pierce says.

Wheat is slightly weaker on better chance of rains in needy HRW regions, he says. "I do not agree with this and feel wheat could easily be back higher tomorrow."

Corn is trying to gain on continued talk of lower acreage (than USDA March estimate), Pierce says. "Solid exports Thursday inching closer to USDA's annual expectations are helping today's price action. Plus, investors believe the corn market is oversold, technically."

 

 

Mike

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At the open:

At the open, the May corn futures are 1 1/2 cents higher at $3.59. May soybean futures are 1/4 of a cent lower at $9.07. May wheat futures are 2 cents lower at $4.60. May soymeal futures trade $0.30 short ton higher at $268.20. May soyoil futures are $0.17 lower at $34.10.  In the outside markets, the Brent crude oil market is $1.87 per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 115 points lower.

 

Mike

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USDA Weekly Export Sales Thursday:

Wheat= 217,400 metric tons vs. the trade’s expectation of  200,000-450,000 metric tons.

Corn= 1.12 million metric tons vs. the trade’s expectation of 800,000-1,200,000 metric tons.

Soybeans= 421,900 mt. vs. the trade’s expectation of 250,000-500,000 metric tons.

Soybean meal= 52,600 mt. vs. the trade estimate of 75,000-200,000 metric tons.

 

Mike

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At 8:15am:

Aside from the weekly Export Sales Report, the USDA announced fresh demand Thursday.

Private exporters reported to the U.S. Department of Agriculture export sales of 145,544 metric tons of corn for delivery to Japan during the 2015/2016 marketing year.

The marketing year for corn began Sept. 1.

 

Mike

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Wheat futures were down again overnight on those lofty USDA crop progress numbers that showed 59% of the winter wheat crop was in good or excellent condition. Again, I'm just having a hard time wrapping my head around that considering how dry it is in the southern Plains, and considering there was an Easter freeze that may have hurt some crops. Export sales are due out this morning, and we'll see if the weaker dollar is enticing buyers to seek U.S. supplies. Here's how things shaped up overnight:

 

Brent Crude Oil = 0.2% lower. 

West Texas Intermediate Crude Oil = 0.1% lower.

Dollar = down 0.1%.

Wall Street = U.S. stock futures lower in pre-market trading. 
World Markets = Global stocks down, gold prices rise on growth worries. 

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Veteran Advisor

Re: Floor Talk April 7

USDA Weekly Export Sales announced Thursday:

 

Wheat:  Net sales reductions of 58,100 metric tons for delivery in marketing year 2015/2016--a marketing-year-low--were down noticeably from the previous week and from the prior 4-week average. Increases reported for Taiwan (50,800 MT, including 48,400 MT switched from unknown destinations), Malaysia (24,500 MT, including 20,000 MT switched from Indonesia), Mexico (22,400 MT), the Dominican Republic (14,500 MT), China (13,300 MT, including 10,000 MT switched from Indonesia), and Nigeria (10,800 MT), were more than offset by reductions for the Philippines (72,700 MT), Indonesia (63,500 MT), unknown destinations (50,200 MT) and Japan (29,300 MT). For 2016/2017, net sales of 159,300 MT were reported primarily for the Philippine (78,000 MT), South Korea (33,500 MT), Indonesia (25,000 MT), and Mexico (18,500 MT). Exports of 392,700 MT were up 15 percent from the previous week and 3 percent from the prior 4-week average. The primary destinations were Indonesia (71,500 MT), Nigeria (68,800 MT), Mexico (65,700 MT), Taiwan (50,800 MT), and China (47,300 MT).

Exports for Own Account: New exports for own account totaling 500 MT were reported to Italy. Exports to Italy totaling 3,100 MT were applied to new or outstanding sales. The current outstanding balance totals 32,800 MT, all Italy.

 

Corn:  Net sales of 945,200 MT for 2015/2016 were up 20 percent from the previous week, but down 5 percent from the prior 4-week average. Increases were reported for Mexico (339,000 MT, including 30,000 MT switched from unknown destinations and decreases of 98,300 MT), Japan (220,300 MT, including 82,800 MT switched from unknown destinations and decreases of 31,200 MT), Taiwan (138,500 MT, including 65,000 MT switched from unknown destinations), Peru (84,500 MT, including 33,000 MT switched from unknown destinations), and Saudi Arabia (65,400 MT, including 65,000 MT switched from unknown destinations). Reductions were reported for unknown destinations (32,500 MT), Guatemala (3,300 MT), and South Korea (700 MT). For 2016/2017, net sales of 175,100 MT were reported for Japan (129,000 MT), Mexico (101,000 MT), and Guatemala (5,000 MT). Reductions were reported for unknown destinations (59,900 MT). Exports of 1,137,500 MT--a marketing-year-high--were unchanged from the previous week, but up 12 percent from the prior 4-week average. The primary destinations were Mexico (371,400 MT), South Korea (129,200 MT), Colombia (129,000 MT), Taiwan (82,900 MT), Japan (82,800 MT), Peru (66,700 MT), and Saudi Arabia (65,400 MT).

Optional Origin Sales: For 2015/2016, the current outstanding balance totals 398,000 MT, all unknown destinations.

 

Soybeans:  Net sales of 420,400 MT for 2015/2016 were up noticeably from the previous week and 2 percent from the prior 4-week average. Increases were reported for unknown destinations (112,700 MT), Japan (106,000 MT, including 14,500 MT switched from unknown destinations and decreases of 300 MT), Germany (66,200 MT, including 3,800 MT switched from the Netherlands), Mexico (66,100 MT), Indonesia (33,100 MT, including 25,000 MT switched from unknown destinations and decreases of 100 MT), and Taiwan (20,100 MT). Reductions were reported for the Netherlands (3,800 MT) and Cuba (1,600 MT). For 2016/2017, net sales of 1,500 MT were reported for Japan. Exports of 322,500 MT were down 19 percent from the previous week and 54 percent from the prior 4-week average. The primary destinations were China (70,300 MT), Germany (66,200 MT), Mexico (50,900 MT), Indonesia (49,800 MT), Colombia (22,900 MT), Japan (20,600 MT), and Cuba (14,400 MT).

 

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