Floor Talk, August 19, 2019
At the close:
At the close, the Sep. corn futures finished 6¢ lower at $3.65. Dec. corn futures settled 6 1/4¢ lower at $3.74 1/2.
Nov. soybean futures closed 13 1/2¢ lower at $8.66 1/4. Jan. soybean futures ended 13¢ lower at $8.80 1/2.
Dec. wheat futures closed 5¢ lower at $4.72 1/2.
December soymeal futures closed $3.10 per short ton lower at $297.20. December soy oil futures are $0.47 lower at 29.04¢ per pound.
In the outside markets, the NYMEX crude oil market is $1.19 higher, the U.S. dollar is higher, and the Dow Jones Industrials are 275 points higher.
At midsession, the Sep. corn futures are 5 3/4¢ lower at $3.65. Dec. corn futures are 6¢ lower at $3.74.
Nov. soybean futures are 8 1/2¢ lower at $8.71 1/4. Jan. soybean futures are 8 1/4¢ lower at $8.85 3/4.
Dec. wheat futures are 4 1/2¢ lower at $4.73.
December soymeal futures are $1.50 per short ton lower at $298.80. December soy oil futures are $0.40 lower at 29.11¢ per pound.
In the outside markets, the NYMEX crude oil market is $0.82 higher, the U.S. dollar is lower, and the Dow Jones Industrials are 271 points higher.
Matt Tranel, Cash Advisor for Commodity Risk Management Group, says that the favorable weather pressures the farm markets.
“Looks like the expression of "rain makes grain" has this corn market moving lower once again, to begin the week. Rainfall covered a widespread region of the Corn Belt, over the weekend, with precipitation exceeding what many had forecast. Plus, there appears to be more rain on the way for this week, and cooler temperatures, which would benefit further crop progress.
Tranel added, “The funds are continuing to pressure this market from the results of the latest WASDE report last week. That will weigh on the market for awhile. This week is all about crop tour. The trade will be paying very close attention to every state's yield estimates, especially out of the eastern Corn Belt. If results confirm USDA estimates, expect more downside. If the crop tour’s numbers are lower than the USDA then we may get a pop. But, $4 per bushel December futures will be a tough nut to crack, with the info that we have to trade today.”
In early trading, the Sep. corn futures are 5 3/4¢ lower at $3.63. Dec. corn futures are 6 3/4¢ lower at $3.74.
Nov. soybean futures are 8 1/2¢ lower at $8.71 1/4. Jan. soybean futures are 8 1/4¢ lower at $8.84 3/4.
Dec. wheat futures are 2 1/2¢ lower at $4.75.
December soymeal futures are $2.30 per short ton lower at $298.00. December soy oil futures are $0.15 lower at 29.36¢ per pound.
In the outside markets, the NYMEX crude oil market is $0.88 higher, the U.S. dollar is lower, and the Dow Jones Industrials are 328 points higher.
Al Kluis, Kluis Advisors, says that investors are mixed on the markets.
“The grain markets closed higher on Friday. The grain markets were very oversold and bounced back on Friday, but closed lower for the week. The lows last week in the corn markets are likely to be the seasonal lows. In the last few years (2016 to 2018), the corn market has bottomed ahead of harvest. I do not look for a "V" type of bottom, but rather the start of basing type market action,” Kluis told customers in a daily note.
Kluis added, “How much rain will hit early this week in the central and eastern Corn Belt? And where? That area remains dry, and the only chance of rain over the next two weeks is early this week. We expect steady conditions in today’s USDA Crop Progress report.”
Cattle are now thru a long term correction.
Less calf crop going forward and feed cheap to free with the govt haying grazing chopping cropping changes.
Look like no supposed farm crisis for grazers and cattle just going to keep going higher going forward.