Floor Talk, August 6, 2021
At the close:
At the close, the Sept. corn futures closed 3/4¢ lower at $5.55. New crop Dec. futures finished 3 1/4¢ higher at $5.56 1/2. March corn futures closed 3 1/4¢ higher at $5.64 1/4.
Sept. soybean futures settled 8 1/2¢ higher at $13.44.
Nov. soybean futures ended 8 1/4¢ higher at $13.36. January soybean futures closed 8 1/2¢ higher at $13.41.
Sept. wheat futures finished 6 3/4¢ higher at $7.19.
Oct. soymeal futures closed $0.30 per short ton higher at $355.80.
Oct. soy oil futures finished $0.34 higher at 61.81¢ per pound.
In the outside markets, the NYMEX crude oil market is 0.70 lower (-1.01%) at $68.39. The U.S. dollar is higher, and the Dow Jones Industrials are 136 points higher (+0.39%) at 35,200 points.
In early trading, the Sept. corn futures are 1 1/4¢ lower at $5.54. New crop Dec. futures are 1/2¢ higher at $5.53 1/2. March corn futures are 1/2¢ higher at $5.61.
Sept. soybean futures are 7 1/4¢ higher at $13.43.
Nov. soybean futures are 7 1/4¢ higher at $13.35. January soybean futures are 7 1/2¢ higher at $13.40.
Sept. wheat futures are 3 3/4¢ higher at $7.16.
Oct. soymeal futures are $0.70 per short ton higher at $354.90.
Oct. soy oil futures are $0.05 higher at 61.02¢ per pound.
In the outside markets, the NYMEX crude oil market is 0.54 higher (+0.78%) at $69.63. The U.S. dollar is higher, and the Dow Jones Industrials are 157 points higher (+0.45%) at 35,221 points.
Bob Linneman, Kluis Advisors, says that soybeans have now closed under the 100-day average for three consecutive days.
“This has not happened since June 2020. Reports of the national soybean basis widening by 24¢ this week is making it difficult for the bulls to hold their ground. As disappointing as this news may sound, national soybean basis against the November futures is still nearly 80 cents stronger than the three-year average for early August. China is actively locking in bushels from South America, in addition to the U.S. The U.S. appears to be the cheaper option at the moment," Linneman stated in a note to customers.
Linneman added, "Recent updates to the rainfall over the next 10 days is leaving most of North Dakota, South Dakota, Nebraska and Kansas in the dry zone. It looks as though some heat could return at the end of the 10-day window. Watch for field reports from farmers in the western Corn Belt to see how the crop is progressing."
What say you?
Re: They know exactly how bad this drought, ...
They're just trying to get some bushels priced before everybody else understands "how bad the drought is". ND, SD, Iowa & Minn produce about 30% of the nation's soybeans. It's hard to believe those four states will produce anything like their normal quota given how dry they are.
The bottom line, you have to have moisture to fill pods.