Floor Talk August 26, 2020
At the close:
At the close, the Sept. corn futures finished 1/4¢ lower at $3.40 3/4. Dec. corn futures finished 1/4¢ lower at $3.54 3/4.
Nov. soybean futures settled 4¢ higher at $9.24 1/2. January soybean futures finished 3¢ higher at $9.30 3/4.
Dec. wheat futures closed 4 1/4¢ higher at $5.39 3/4.
Dec. soymeal futures ended $0.70 per short ton lower at $299.30. Dec. soy oil futures settled $0.25 cent higher at 32.53¢ per pound.
In the outside markets, the NYMEX crude oil market is $0.11 per barrel lower at $43.46. The U.S. dollar is higher, and the Dow Jones Industrials are 54 points higher.
At midday, the Sept. corn futures are 1¢ lower at $3.39 3/4. Dec. corn futures are 1 1/4¢ lower at $3.53 3/4.
Nov. soybean futures are 2 1/2¢ higher at $9.22 1/2. January soybean futures are 1 3/4¢ higher at $9.29 3/4.
Dec. wheat futures are 2 1/2¢ higher at $5.38 3/4.
Dec. soymeal futures are $1.40 per short ton lower at $298.60. Dec. soy oil futures are $0.31 cent higher at 32.59¢ per pound.
In the outside markets, the NYMEX crude oil market is $0.04 per barrel lower at $43.31. The U.S. dollar is higher, and the Dow Jones Industrials are 25 points higher.
Britt O'Connell, Cash Advisor for Commodity Risk Management Group, says that the farm markets continue to build and hold risk premium in as expectations of record yields begin to wane.
"The hot and dry weather pattern that has sat over most of the Midwest is believed to be taking the top end off of yield. China has been an active buyer of corn and soybeans this week. As corn approaches our hold high of $3.62 that should serve as fairly stiff resistance. Talking with grain buyers across the Midwest farmers have started engaging in some sales, which will also pressure moves higher. Funds have add to their soybean position, pushing over 100k and corn funds are lightening the load and currently carrying less than 100k short. Maybe more back and forth trade now until yields start rolling in. Stocks are currently not projected to be tight in either crop. Bulls will need to be fed to maintain control," O'Connell says.
In early trading, the Sept. corn futures are 1¢ lower at $3.39 3/4. Dec. corn futures are 3/4¢ lower at $3.53 3/4.
Nov. soybean futures are 4 1/2¢ higher at $9.24 1/2. January soybean futures are 3 1/2¢ higher at $9.30 3/4.
Dec. wheat futures are 1/2¢ lower at $5.35 3/4.
Dec. soymeal futures are $0.50 per short ton higher at $300.50. Dec. soy oil futures are $0.32 cent higher at 32.60¢ per pound. In the outside markets, the NYMEX crude oil market is $0.19 per barrel higher at $43.54. The U.S. dollar is higher, and the Dow Jones Industrials are 40 points lower.
Private exporters reported to the USDA export sales of 400,000 metric tons of soybeans for delivery to China during the 2020/2021 marketing year.
The marketing year for soybeans began Sept. 1.
Al Kluis, Kluis Advisors, says that the worsening crop conditions are giving support to the markets.
"Crop ratings will move lower again next Monday. This sets up lower crop projections in the September USDA report. I think of the USDA reports as snapshots of where the crop is as of that week. It is important to watch the changes from the August to September projections. When they get larger, the final crop projections usually increase. When the projections move lower, then the final crop size also usually moves lower," Kluis told customers in a daily note.
He added, "Watch the soil moisture index in the Corn Belt. Moisture conditions in the Corn Belt declined for the third week in a row, with dry conditions for most of August. The soil moisture in Iowa is rated 76% short to very short, Nebraska is 64% short to very short, Michigan is 63% short to very short, and Ohio is 60% short to very short."
Re: Floor Talk August 26, 2020
It'll be all about location location location.
This morning got text from ADM, beans broke $9.00 cash, actually got just a little above it.
A rain in next couple days would benefit my beans.
- 95° and a 15mph wind again today. Don't think there will be much 58+ tw corn around here.