Floor Talk December 11, 2020
At the close:
At the close, the March corn futures finished 2 1/4¢ higher at $4.23 3/4. May corn futures ended 2 1/4¢ higher at $4.26 1/2.
January soybean futures closed 7 3/4¢ higher at $11.60 3/4. March soybean futures closed 7 1/4¢ higher at $11.66.
March wheat futures finished 18¢ higher at $6.14 3/4.
Jan. soymeal futures closed $3.10 per short ton higher at $380.30.
Jan. soy oil futures closed 0.18 of a cent higher at 38.24¢ per pound.
In the outside markets, the NYMEX crude oil market is $0.19 per barrel lower (-0.41%) at $46.59. The U.S. dollar is higher, and the Dow Jones Industrials are 41 points higher (+0.14%) 30,040 points.
Britt O'Connell, ever.ag, says that grain markets continue to find comfort in the same ranges that were traded prior to USDA's WASDE report yesterday.
"The USDA failed to provide the bulls with any new stories and as we move into a time of year where historically we've been range bound it seems this year could be more of the same. Wheat has found itself back towards the top end of its range with Russia announcing, this morning, that it is contemplating an export tax, which would be designed to keep more wheat domestically and provide a higher degree of food security internally," O'Connell says.
She added, "Things to watch as we moved towards 2021 will be fund positioning. With the funds owning such massive longs in corn and soybeans, the question is will they be content to carry those into next year or are they looking to take profit on the 2020 books."
Brazil has been receiving very timely rains in much of its growing regions while Argentina still remains largely dry, O'Connell says.
While CONAB has lowered Brazilian production expectations a mere .5 million metric tonnes, the USDA left that number untouched in this report.
"Record planted acres are going to serve as some buffer should yield be ratcheted down in the future. Soon, Northern Brazil will start to be able to more accurately estimate yields as we move into the flowering stage. This timeframe is much like our July/Aug rains in the U.S. and we know what that typically does for yields when we receive rains. The trade will keep a close eye on SA, but the weather pattern seems to be bringing more favorable rains to Brazil," O'Connell says.
At midsession, the March corn futures are 1 3/4¢ higher at $4.23 3/4. May corn futures are 1 3/4¢ higher at $4.25.
January soybean futures are 8¢ higher at $11.60 3/4. March soybean futures are 7¢ higher at $11.65 1/2.
March wheat futures are 20 1/2¢ higher at $6.17 3/4.
Jan. soymeal futures are $2.40 per short ton higher at $379.60.
Jan. soy oil futures are 0.37 of a cent higher at 38.43¢ per pound.
In the outside markets, the NYMEX crude oil market is $0.11 per barrel lower (-0.24%) at $46.67. The U.S. dollar is higher, and the Dow Jones Industrials are 147 points lower (-0.49%) 29,852 points.