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Veteran Advisor

Floor Talk, April 8, 2020

At the close:

At the close, the May corn futures finished 1 1/2¢ lower at $3.30. July corn futures finished 1 3/4¢ lower at $3.35 1/2.

May soybean futures closed 1/4¢ lower at $8.54. July soybean futures ended 3/4¢ higher at $8.61.

May wheat futures settled 1¢ lower at $5.48 3/4.


May soymeal futures closed $1.00 per short ton higher at $292.80.

 May soy oil futures closed $0.30 cents lower at 27.18¢ per pound.



In the outside markets, the NYMEX crude oil market is $2.58 per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 779 points higher.

 

Mike

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At midsession:

At midsession, the May corn futures are 2¢ lower at $3.29 1/2. July corn futures are 2 1/2¢ lower at $3.34.

May soybean futures are 1/4¢ lower at $8.54. July soybean futures are 1/4¢ higher at $8.61.

May wheat futures are 1/2¢ lower at $5.48 3/4.


May soymeal futures are $0.20 per short ton higher at $294.00.

May soy oil futures are $0.32 cents lower at 27.16¢ per pound.



In the outside markets, the NYMEX crude oil market is $0.76 per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 574 points higher.

 

Mike

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At 8:45am:

 

In early trading, the May corn futures are 2¢ higher at $3.33 1/2. July corn futures are 1 1/2¢ higher at $3.38 3/4.

May soybean futures are 1 1/4¢ higher at $8.56. July soybean futures are 1 3/4¢ higher at $8.62 3/4.

May wheat futures are 3¢ higher at $5.52 3/4.

May soymeal futures are $1.40 per short ton higher at $295.20.

 May soy oil futures are $0.08 cents lower at 27.40¢ per pound.



In the outside markets, the NYMEX crude oil market is $0.66 per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 260 points higher.

Al Kluis, Kluis Advisors, says that the corn charts are trying to carve out a spring low as we quickly approach U.S. planting season.

"Soybean bulls are in need of some bullish headlines or we could see prices slip further. The current prices for new crop corn and soybeans are pushing farming operations to once again evaluate crop rotation. Current estimates for U.S. acreage and normal trendline yields could push the US balance sheets to levels that many will consider bearish, especially if China is slow to fulfill our phase one agreement," Kluis told customers in a daily note.

Kluis added, "Thursday will be a big day for the markets. The monthly USDA WASDE report is slated for release at 11:00 am Central Time, at the same time the big global players in the oil world will be meeting to discuss mutual cuts to production, Many analysts expect to see countries take advantage of this dip in grain prices ahead of U.S. planting season to secure a portion of import needs."

 

Note: Hey, I heard from Ray Jenkins the other day. It was good to catch up with him. As a longtime corn buyer, he's really interested in the news about the ethanol cuts and what this might mean to corn use numbers. Plus, we talked cattle and feeding. Thanks, Ray, for dropping me a line.

What say you?

 

Mike

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2 Replies
Senior Advisor

Re: Here, got just about two weeks to decide........

Here, we have two markets for corn, ethanol or dairy cow feed.   Given the current & future catastrophic losses the dairy industry is incurring, if the ethanol plant doesn't open up there simply isn't any reason to grow any amount of corn.  That leaves us two weeks, three at the most to decide whether or not to plant corn.

  Quite honestly, I doubt we'll know in three weeks what the ethanol situation will be, come Oct.  It's looking more and more like the safe bet is to plant the preponderance of beans and be prepared to store the whole crop until well into 2021.

  The only thing that could change that is if Brazil gets dry enough in the next two weeks to seriously threaten it's second season corn crop.

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Senior Advisor

Re: Ray Jenkins, I'd sure be interested to hear his thoughts on our situation.

Ray Jenkins, I'd sure be interested to hear his thoughts on our situation.

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