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Veteran Contributor

Floor Talk December 13

At the close:

At the close, the March corn futures settled 1/2¢ higher at $3.61 per bushel. January soybean futures finished 3¢ lower at $10.28. March wheat futures closed 1/4¢ higher at $4.17 1/2. January soy meal futures settled $1.10 short ton lower at $315.10. January soy oil futures are $0.19 lower at 36.78¢ per pound.  In the outside markets, the Brent crude oil market is $0.03 per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 126 points higher.

 

 

Mike

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At mid-session:

At mid-session, the March corn futures are 2 1/2¢ higher at $3.63 per bushel. January soybean futures are 1/4¢ higher at $10.31. March wheat futures are 2¢ higher at $4.19. January soy meal futures are $0.50 short ton higher at $316.70. January soy oil futures are $0.14 lower at 36.83¢ per pound.  In the outside markets, the Brent crude oil market is $0.08 per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 108 points higher.

 

 

At 10:40am:

 

Corn and soybean prices remain slightly higher, Tuesday.

 

Jason Ward, Northstar Commodity’s Director of Grains and Energy, says that today’s trading features mostly spreading.
“More and more chatter of soybeans over corn and how many acres are going to shift away from corn. We are promoting a minimum of 5 million less corn acres and trying our guts out for 7-8 million less,” Ward says.
 
Ward adds, “All producers need to do is look at what can happen when they lower production. Take a look at what OPEC deal has done to crude prices and lower milk production has done to milk prices. All of a sudden everyone is turning profitable.”
 
Producers need to heed the markets plea and plant more soybeans but at the same time, protect the downside on those soybeans, he says.
 
Chinese soybeans are trading at a record over Chinese corn, Ward says.
U.S. soybeans (new crop) traded to a 20-year high over new crop corn last week.
 
“So, today’s move initially higher on soybeans was following Chinese meal moving up to new 5 month highs. I also see weather in Argentina as supportive, but Brazil weather is bearish. So, South America is a mixed bag. I think you can lower Argentine production but raise Brazil for a net wash.”

 

Mike

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At the open:

At the open, the March corn futures are 3/4¢ higher at $3.61 per bushel. January soybean futures are 6¢ higher at $10.37. March wheat futures are 2 1/4¢ higher at $4.19 1/2. January soy meal futures are $1.70 short ton higher at $317.90. January soy oil futures are $0.09 higher at 37.06¢ per pound.  In the outside markets, the Brent crude oil market is $0.07 per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 108 points higher.

 

Mike

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Grains and soybeans were little changed overnight as traders are weighing strong demand against large crops in the U.S. and wetter weather in South America. Ag groups in Kansas said this week they're optimistic the new administration will help undo some of the burdensome environmental regulations but are concerned about trade. 
 

Here's what happened overnight:

 

Brent Crude Oil = 1.1% higher .

West Texas Intermediate Crude Oil = 0.9% higher.

Dollar = up 0.1%.

Wall Street = U.S. stock futures higher in overnight trading.
World Markets = Global stocks rise, again following oil futures higher. 

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Veteran Advisor

Re: Floor Talk December 13

I understand what politicians do is important, but there are somethings that could be done without them to help sell grain.

 

  Like using some check off dollars this week to remind drivers in these frigid temperatures what it was like to have a gas line freeze in their cars and trucks when the tank got low before ethanol blends. 

 

Remind them that corn and wheat and livestock prices are at low levels, so they should be asking why their food prices are still so high. Show them what percent of the product they are buying goes to the farmer.  How about a chart of the effect of food prices after commodities went up, and a chart how slow they are to come down when commodities crashed.  I can't believe how many people think that there is GMO wheat in bread. At the same time, GMO insulin is a life saver.  Lots of fruits and veggies are GMO and they are accepted by the public, and should be.

 

I am sure many could come up with more ideas and better ones.  I don't need another farm magazine, quit preaching to the choir, talk to the consumer.

 

If we learned anything from this election, there are plenty of consumers just trying to get buy and they still care about costs. AND, they do listen. BUT, don't treat them like idiots.  Find a marketer that has some common sense and wisdom.