Floor Talk August 30
At the close:
At the close, the Sept. corn futures finished 4¢ lower at $3.29 1/2, while December futures finished 3 1/4¢ lower at $3.45 1/2. Nov. soybean futures closed 4¢ lower at $9.33 1/4, Jan. soybean futures are 3 3/4¢ lower $9.42 3/4. September wheat futures finished unchanged at $4.29. Dec. soy meal futures closed $1.80 per short ton lower at $297.40. Dec. soy oil futures finished $0.04 higher at 34.69¢ per pound. In the outside markets, the Brent crude oil market is $0.33 per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 37 points higher.
More data to consider. This time it comes from the weekly ethanol production report, according to the EIA.
According to EIA data, ethanol production averaged 1.042 million barrels per day (b/d)—or 43.76 million gallons daily. That is down 9,000 b/d from the week before. The four-week average for ethanol production increased to 1.041 million b/d–marking the highest average in 22 weeks–for an annualized rate of 15.96 billion gallons.
Stocks of ethanol were 21.3 million barrels. That is a 0.9% decrease from last week.
There were zero imports recorded for the second week in a row.
If you missed it, this morning, more fresh sales were announced by the USDA.
Private exporters reported to the U.S. Department of Agriculture export sales of 131,000 metric tons of soybeans for delivery to China during the 2017/2018 marketing year.
The marketing year for soybeans began Sept. 1.
At mid-session, the Sept. corn futures are 3 1/2¢ lower at $3.30, while December futures are 3¢ lower at $3.45. Nov. soybean futures are 5 1/4¢ lower at $9.32, Jan. soybean futures are 5 1/4¢ lower $9.41. September wheat futures are 1 1/2¢ lower at $4.28. Dec. soy meal futures are $2.10 per short ton lower at $297.10. Dec. soy oil futures are $0.01 lower at 34.64¢ per pound. In the outside markets, the Brent crude oil market is $0.15 per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 5 points lower.
Jack Scoville, The PRICE Futures Group’s Senior Market Analyst, says that the markets are just drifting lower today.
“There is really no good reason to buy. The latest crop tour really took the air out of the wings of the bulls,” Scoville says. We have not really paid attention to anything since then, neither the dollar nor the hurricane.”
Scoville adds, “I expect that we are near a bottom for the short term, as we have a 3-day weekend coming and I am not sure how many people want to be hugely short going into the weekend.”
There is some colder air in the forecast for next week, not cold enough to hurt anything but certainly a note on what might be coming, he says.
“Plus, Harvey now in the Delta and moving to the Southeast, less rain and less intense, but still there and maybe some new damage coming. So we might try to grab somewhere along in here,” Scoville says.
In early trading , the Sept. corn futures are 3/4¢ lower at $3.32, while December futures are 3/4¢ lower at $3.48. Nov. soybean futures are 1 1/4¢ lower at $9.36, Jan. soybean futures are 1 1/4¢ lower $9.45. September wheat futures are 1 1/2¢ higher at $4.31. Dec. soy meal futures are $0.50 per short ton lower at $296.10. Dec. soy oil futures are $0.03 lower at 34.62¢ per pound. In the outside markets, the Brent crude oil market is $0.39 per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 7 points lower.
Wheat futures were the green spot of the day, rising on dismal expectations for the spring crop this year, which if realized will be the smallest in almost 30 year. Wheat futures were up 2-3 cents while corn and beans moved less than a penny. Analysts are saying that traders and hedgers know the markets are oversold so they can't get too short, but don't want to get too long before the long Labor Day weekend. In other news, Harvey, now a tropical storm, is expected to make landfall again and devastate Louisiana the same way it devastated Texas -- with unrelenting rain and strong winds. The flood watches extend as far north as the bootheel of Missouri. This storm just won't go away, but hopefully it'll lose strength and die out as it makes its way north. See all the details in today's 3 Big Things at http://www.agriculture.com/news/three-big-things/3-big-things-today-august-30.
Here's what happened overnight:
Brent Crude Oil = down 0.6%
West Texas Intermediate = down 0.7%
Dollar = up 0.4%.
Wall Street = U.S. stock futures higher in pre-market trading.
World Markets = Global stocks mixed on geopolitical uncertainty.