Floor Talk August 25
After the close:
FJ Tour final estimates released Friday:
Corn= 13.95 billion bushels, 167 yield
Soybeans= 4.33 billion bushels, 48.5 yield
At the close:
At the close, the Sept. corn futures are finished 3 3/4¢ lower at $3.38 3/4, while December futures finished 2 3/4¢ lower at $3.53 1/2. Sep. soybean futures closed 2 1/4¢ lower at $9.39, Nov. soybean futures closed 2¢ lower at $9.44 1/2. September wheat futures ended 3/4¢ higher at $4.35. Dec. soy meal futures finished $0.90 per short ton lower at $300.00. Dec. soy oil futures closed $0.18 lower at 34.95¢ per pound. In the outside markets, the Brent crude oil market is $0.44 per barrel higher, the U.S. dollar is lower, and the Dow Jones Industrials are 75 points higher.
Jack Scoville, The PRICE Futures Group’s Senior Market Analyst, says that the markets are waiting for more news to trade.
“I think we are all waiting for the tour production estimates this afternoon, but the general sense is that there is a pretty decent crop out there that needs to get moved,” Scoville says.
He adds, “The investors’ ideas are that maybe USDA was not so out of line after all.”
The US Dollar is higher, putting pressure on the markets.
“With the global central banks’ meeting in Jackson Hole, Wyoming, this weekend. a lot of investors are on the sidelines waiting for another shoe to drop or something.”
“I’m looking for the market to stay quiet through the close and we come back next week and maybe get a little more excited,” Scoville says.
At mid-session, the Sept. corn futures are 1 3/4¢ lower at $3.40, while December futures are 1 1/2¢ lower at $3.54. Sep. soybean futures are 3 1/2¢ lower at $9.37, Nov. soybean futures are 3 1/4¢ lower at $9.43. September wheat futures are 1¢ higher at $4.35. Dec. soy meal futures are $1.00 per short ton lower at $299.90. Dec. soy oil futures are $0.26 lower at 34.87¢ per pound. In the outside markets, the Brent crude oil market is $0.26 per barrel higher, the U.S. dollar is lower, and the Dow Jones Industrials are 45 points higher.
If you missed it at 8:00am, Friday, here is a fresh export announcement.
Private exporters reported to the U.S. Department of Agriculture the following activity:
--Export sales of 132,000 metric tons of soybeans for delivery to China during the 2017/2018 marketing year; and
--Export sales of 105,500 metric tons of soybean cake and meal for delivery to Thailand during the 2017/2018 marketing year.
The marketing year for soybeans began on Sept. 1; soybean cake and meal began Oct. 1.
In early trading , the Sept. corn futures are 1 1/4¢ lower at $3.40, while December futures are 1¢ lower at $3.55. Nov. soybean futures are 1¢ lower at $9.40, Jan. soybean futures are 1 3/4¢ lower at $9.44 3/4. September wheat futures are 2 1/4¢ higher at $4.36. Dec. soy meal futures are $0.10 per short ton lower at $300.80. Dec. soy oil futures are $0.04 lower at 35.09¢ per pound. In the outside markets, the Brent crude oil market is $0.37 per barrel higher, the U.S. dollar is lower, and the Dow Jones Industrials are 115 points higher.
Corn and beans were only slightly lower overnight amid some rainfall in the forecast in parts of Nebraska and Iowa over the weekend. The rains will be isolated and intermittent so great coverage isn't expected but Chicago doesn't like to go into a weekend too long if there's a hint of precip in the forecast. Corn is down about 2 cents and beans are down about 3 cents. Wheat was actually up about a penny overnight. Speaking of rain, Harvey is officially a hurricane, as expected, and is expected to make landfall sometime overnight. It's going to be a doozy with warnings of all sorts along the Texas Gulf Coast inland all the way to San Antonio. Wind speeds are already at 105 miles an hour and the storm is expected to keep strengthening until it hits the coastal towns. In crop tour news, yields in Iowa and Minnesota are pegged by scouts to be lower than last year. Check out all the details in today's 3 Big Things at http://www.agriculture.com/news/three-big-things/3-big-things-today-august-25.
Here's what happened overnight:
Brent Crude Oil = up 0.7%
West Texas Intermediate = up 0.8%
Dollar = down 0.1%.
Wall Street = U.S. stock futures higher in pre-market trading.
World Markets = Global stocks higher on strengthened oil futures.