Floor Talk August 3
At the close:
At the close, the Sept. corn futures settled 1 1/4¢ lower at $3.63 1/2, while December futures finished 1 1/4¢ lower at $3.77 3/4. Sep. soybean futures finished 16 3/4¢ lower at $9.54, November soybean futures are 17¢ lower at $9.60 1/2. September wheat futures ended 3¢ lower at $4.57 3/4. Dec. soy meal futures closed $2.90 per short ton lower at $312.60. Dec. soy oil futures closed $0.77 lower at 33.80¢ per pound. In the outside markets, the Brent crude oil market is $0.53 per barrel lower, the U.S. dollar is lower, and the Dow Jones Industrials are 25 points higher.
Dustin Johnson, Senior Strategist for AgYield, says that crop estimates are moving the markets.
“Informa, private analyst firm, released its crop estimates and have soybeans at 47.2 bushels per acre and corn at 165.9, below the USDA’s July estimates,” Johnson says.
Johnson added, “November 2017 soybean futures prices also had a gap that was widely discussed, may have found some technical pressure down to the $9.58 and below for that reason.”
Also, there are articles pointing to souring trade relations with China and the impact that will have on US exports, Johnson says.
Corn is still holding above $3.74 in the Dec, which was the June low, could be technically supported, he says.
At mid-session, the Sept. corn futures are 1 1/4¢ higher at $3.66, while December futures are 1 1/2¢ higher at $3.80. Nov. soybean futures are 12 1/2¢ lower at $9.65, January soybean futures are 12¢ lower at $9.74. September wheat futures are 1/4¢ higher at $4.61. Dec. soy meal futures are $2.10 per short ton lower at $313.40. Dec. soy oil futures are $0.63 lower at 33.94¢ per pound. In the outside markets, the Brent crude oil market is $0.15 per barrel higher, the U.S. dollar is lower, and the Dow Jones Industrials are 2 points higher.
If you missed the USDA Weekly Export Sales Report, here it is:
Wheat= 145,500 metric tons vs. the trade’s expectations of between 300,000-500,000 mt.
Corn= 475,000 mt. vs. the trade’s expectations of between 350,000-900,000 mt.
Soybeans= 600,900 mt. vs. the trade’s expectations of between 300,000-1,000,000 mt.
Soybean meal= 144,800 mt. vs. the trade’s expectations of between 25,000-175,000 mt.
In early trading, the Sept. corn futures are 2 1/4¢ lower at $3.62, while December futures are 2 1/2¢ lower at $3.76. Aug. soybean futures are 14 1/2¢ lower at $9.56, November soybean futures are 14 3/4¢ lower at $9.62. September wheat futures are 3¢ lower at $4.57. Dec. soy meal futures are $3.20 per short ton lower at $312.30. Dec. soy oil futures are $0.57 lower at 34.00¢ per pound. In the outside markets, the Brent crude oil market is $0.14 per barrel higher, the U.S. dollar is lower, and the Dow Jones Industrials are 7 points lower.
Soybeans dropped and corn was lower overnight as rain fell in areas of the northern Plains that have been extremely dry in the past few months. Much of western North Dakota and eastern Montana saw precipitation, which will boost the spring wheat, corn and bean crops in the area. Little or no rain fell in some parts of the region in the past 30 days and much of western North Dakota is in an `extreme' or `excessive' drought, the worst-possible ratings from the US Drought Monitor. Beans lost about 15 cents, corn was down about 4 cents and wheat lost a nickel.
Meanwhile, more rain is expected today in the eastern Midwest where more than enough rain has fallen in recent weeks. While most rivers have fallen back below flood stage, there are some that are still over their banks, which can be a problem. In other news, ethanol stockpiles fell to a seven-month low and corn inventories are down the the lowest level since mid-June. 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-3
Here's what happened overnight:
Brent Crude Oil = down 0.1%
West Texas Intermediate = down 0.1%
Dollar = up 0.2%.
Wall Street = U.S. stock futures lower in pre-market trading.
World Markets = Global stocks mixed after Bank of England leaves rates unchanged.
Re: Floor Talk August 3
In all the years I grew spring wheat I never knew an August rain to help the yield.
Rain at harvest time lowers your test weight thus taking away yield.
It will sure help the corn and beans though.