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marketeye
Veteran Advisor

Floor Talk August 14

At the close:

The Dec. corn futures settled 3 3/4 cents higher at $3.73.

 

Nov. soybean futures closed 9 1/4 cents higher at $10.56.

Sep. wheat futures closed 9 1/4 cents higher at $5.37.

 

Dec. soymeal futures closed $9.00 higher at $351.10. Dec. soyoil futures ended $0.46 lower at $33.86.
In the outside markets, the NYMEX Brent crude oil is $1.90 per barrel lower, the dollar is lower and the Dow Jones Industrials are 48 points higher.

 

One analyst describes today's market like this (at-mid-session): "While there is no doubt that traders will manage their positions, any rumblings of such things are likely nothing more than the reality of a flat market with no real reason to add or subtract much from existing positions.  When a market becomes range-bound (like corn), day traders (in and out before the market closes) are the predominant participant.  Trending trades easily attract people willing to take a position one way or the other.  The reality of the current market is that it has not moved of late and funds can play the day trade game without committing to one side of the market or the other.  Like everyone else, they are waiting for movement in one direction or the other.  To your question, putting forward less margin is more the outcome of their current strategy rather than the motivation for it.
 
Markets are conflicted with the hope of rain through the Midwest in the 5 day forecast as well as the hope of a late summer rally.  The higher trade in the face of the forecast suggests that the hope of the rally is winning today.  Like any other move, it will take more cash and more will of the buyers to allow this to continue."

 

Yet another has this perspective: "The market getting squeezed is the soybeans and the soybean meal.  There is a shot squeeze going on in the August as that contract goes off the board.  It will be interesting to see if the new crop can hold once the Aug goes off the board and it might not.  The export sales were good and the domestic demand seems solid and the shorts are getting squeezed.  The funds might be trying to dress up the closes in corn, I have not heard that, but they might be as they are still a little long.  Even so, though, I feel like we can pop a bit in it as the market has come down a lot and the harvest pressure is still a few weeks away.  I don’t look for much upside, but farmers are not selling at these levels and maybe we need a small rally to shake some corn loose and then send the market to its final lows where ever that may be.  Wheat is also higher as it keeps raining in Europe.  It was supposed to be drier this week, so some spec buying coming in."

 

Mike

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At mid-session:

The Dec. corn futures are trading 1 3/4 cents higher at $3.71.

 

Nov. soybean futures are trading 6 3/4 cents higher at $10.53.

Sep. wheat futures are 6 1/4 cents higher at $5.34.

 

Dec. soymeal futures are $7.00 higher at $349.10. Dec. soyoil futures are trading $0.38 lower at $33.94.
In the outside markets, the NYMEX Brent crude oil is $1.48 per barrel lower, the dollar is lower and the Dow Jones Industrials are 37 points higher.

 

Mike

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At the open:

The Dec. corn futures are trading unchanged at $3.70.

 

Nov. soybean futures are trading 1 cent lower at $10.45.

Sep. wheat futures are 2 cents higher at $5.30.

 

Dec. soymeal futures are $1.60 higher at $343.70. Dec. soyoil futures opened $0.49 lower at $33.83.
In the outside markets, the NYMEX Brent crude oil is $0.71 per barrel lower, the dollar is lower and the Dow Jones Industrials are 23 points higher.

 

Mike

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At 8:25am:

August futures contracts expire today at 12-Noon.

 

 

Mike

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At 8:10am:

USDA Weekly Export Sales show that soybeans and corn beat, wheat fell below expectations:

 

Wheat=  338,700 metric tons  vs. the trade's expectations of between 450,000-650,000 metric tons



Corn= 904,900 metric tons vs. the trade's expectations of between 600,000-900,000 metric tons



Soybeans= 1.14 million metric tons vs. the trade's expectations of between 850,000-1,100,000 metric tons.
Soybean meal=  121,100 metric tons vs. the trade's expectations of between 300,000-625,000 metric tons.

 

 

Mike

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At 7:35am:

Early calls: Corn is seen 1-2 cents lower, soybeans 1-2 cents lower, and wheat 2-4 cents lower.

Trackers:
Overnight grain, soybean markets=Trading lower.

Brent Crude Oil=$0.71 per barrel lower.
Dollar=Lower.

Wall Street=Seen higher, with the markets responding to Russia's Putin to stop bloodshed in Ukraine. U.S. Jobless Claims Report shows an increase of 21,000 to 311,000 filed.

World Markets=Europe stocks were higher, Asia/Pacific stocks were mostly higher.

 

 

 

More in a minute,

 

Mike

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1 Reply
roarintiger1
Honored Advisor

Re: Floor Talk August 14

Mike,  Any chance we could get some information on the planting intentions for Brazil and Argentina?  Seems to me that with their sugar cane shortage, they would be thinking of planting more of that in Brazil.  But any info will help.   Thanks!

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