Floor Talk August 30
At the close:
At the close, the Sep. corn futures settled 7 3/4¢ lower at $3.04, while Dec. futures finished 5¢ lower at $3.15 3/4 per bushel. Sep. soybean futures closed 17 3/4¢ lower at $9.65 1/2, while Nov. soybean futures closed 13 1/2¢ lower at $9.50 3/4. Sept. wheat futures closed 7 1/4¢ lower at $3.63 1/4. Sep. soymeal futures finished $5.70 short ton lower at $313.80. Sept. soyoil futures closed $0.08 lower at 32.73¢ per pound. In the outside markets, the Brent crude oil market is $0.58 per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 72 points lower.
Deanna Hawthorne-Lahre, Statfutures co-founder, says that the markets are really feeling pressure from all sides.
“The wheat collapse yesterday foretold weaker boards ahead of Sep first notice day. Also, Russia crop continues to grow past 70 million tonnes,” she says.
Hawthorne-Laure adds, “The soybeans are breaking hard today, in spite of additional business to "unknown" this morning. The price blew through $9.60 per bushel, basis the Nov. futures contract, like nothing was there. Next target $9.20. September futures are very weak, heading into ‘first notice day’.
Corn is drifting lower, seeming to be waiting for the executioner, she says. Discussion of upcoming Brazil corn crop size is becoming an item of discussion.”
At mid-session, the Sep. corn futures are 6 1/4¢ lower at $3.05, while Dec. futures are 4 3/4¢ lower at $3.16 per bushel. Sep. soybean futures are 20 1/4¢ lower at $9.63, while Nov. soybean futures are 16¢ lower at $9.48. Sept. wheat futures are 6 1/2¢ lower at $3.64. Sep. soymeal futures are $6.40 short ton lower at $313.10. Sept. soyoil futures are $0.27 lower at 32.54¢ per pound. In the outside markets, the Brent crude oil market is $0.50 per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 49 points lower.
Jason Roose, U.S. Commodities, says that it's a broad-based sell off, today.
"It is a national down day in the commodity markets today, with new contract lows in the corn and the wheat," Roose says. The pressure is coming from the USDA's good crop condition ratings ,the large world feed grain supply, stronger dollar, and the trade is pricing in a record supply."
At the open:
At the open, the Sep. corn futures are 1¢ lower at $3.10, while Dec. futures are 1/2¢ lower at $3.20 per bushel. Sep. soybean futures are 3 3/4¢ lower at $9.79, while Nov. soybean futures are 1¢ lower at $9.63. Sept. wheat futures are 1/4¢ lower at $3.70. Sep. soymeal futures are $0.80 short ton lower at $318.70. Sept. soyoil futures are $0.09 lower at 32.72¢ per pound. In the outside markets, the Brent crude oil market is $0.35 per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 19 points lower.
Corn and beans were modestly lower while wheat rebounded from 10-year lows overnight. Looking at the crop progress report it's apparent that while rain makes grain, rain also makes for flooded fields. Some 96% of Illinois soil and 92% of Iowa soil had adequate or surplus moisture. That sounds good on the surface, but what doesn't sound good is the number of flooded fields being reported all over the Midwest. Even today, several counties in southern Nebraska and northern Kansas are flooded, not to mention the number of diseases being talked about.
Here's what happened overnight:
Brent Crude Oil = 0.8% higher.
West Texas Intermediate Crude Oil = 0.6% higher.
Dollar = up 0.2%.
Wall Street = U.S. stock futures little changed in overnight trading.
World Markets = Global stocks follow oil prices higher.