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Floor Talk, December 17, 2018

[ Edited ]

At the close, the March corn futures closed 3/4¢ lower at $3.84. May futures finished 1/2¢ lower at $3.91 3/4.
 
January soybean futures finished 4 1/2¢ higher at $9.04 3/4. March soybean futures settled 4 1/2¢ higher at $9.18.

March wheat futures closed 5 1/4¢ higher at $5.35 1/2.

January soymeal futures settled 1.80¢ per short ton higher at $309.10.

January soy oil futures closed 0.32 lower at 28.17¢ per pound.
 
In the outside markets, the NYMEX crude oil market is $1.97 lower, the U.S. dollar is lower, and the Dow Jones Industrials are 427 points lower.


Al Kluis, Kluis Advisors, says that the trade expects more new soybean sales to be announced each day to China.
“On Friday, with no new announcements, the soybean market closed lower. In the overnight trade, after a lower start in the stock and commodity markets, prices are slightly higher,” Kluis stated in a daily note to customers.
He added, “Can March corn and March CBOT wheat hold their large continuation gaps on the charts? With the large gap higher on the corn continuation chart, nearby corn futures are at the highest price level since June 2018.”

 

Mike

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At the open:

 

In early trading, the March corn futures are 1/2¢ lower at $3.84. May futures are 1/2¢ lower at $3.91.

 

January soybean futures are 3 1/2¢ higher at $9.04. March soybean futures are 3 1/2¢ higher at $9.17.


 

March wheat futures are 5 1/2¢ higher at $5.35 1/2.



 

January soymeal futures are 1.50¢ per short ton higher at $308.80.

January soy oil futures are 0.09 lower at 28.40¢ per pound.

 

In the outside markets, the NYMEX crude oil market is $0.05 lower, the U.S. dollar is lower, and the Dow Jones Industrials are 286 points lower.

 

Mike

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At 8:00am:

 

Overnight:

 

Corn= 1¢ higher per bushel.

Soybeans= 4¢ higher per bushel.

Wheat=  5¢ higher.

 

Outside Markets:

 

Crude oil= .19¢ higher

U.S. Dollar= Lower

Dow= Down 132 points

 

Big News:

 

Beats me. What do you have?

 

Thanks,

 

Mike

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Re: Floor Talk, December 17, 2018

This won't move today's market, but there are those out there trying to find other soybean export markets. Here's a note, today, from USSOY.org.

 

These are exercerpts of a note that they sent to me today. Again, just interesting reading, during these trade disruption times.

 

"In the current 2018 marketing year, Pakistan has bought 1.72 million metric tons (MMT) of U.S soybeans so far, compared to just 630 thousand metric tons (TMT) in the entire 2017 marketing year.

 

This rapid growth in purchases has helped U.S. producers breathe a sigh of relief — and has also made them wonder — is Pakistan a significant new market for U.S. Soy?

 

A few years ago, Pakistn’s imports of U.S. soybeans were insignificant — with numbers near zero. The country has since become a growing importer of soybeans.

 

From 2015 to 2016, Pakistan’s U.S. imports rose from 166,368 metric tons (MT) of soy to 630 TMT, with an incremental purchase of over 463,632 MT of U.S. Soy in 2017.

A significant jump in purchases of U.S. soybeans at 1.72 MMT is seen in the 2018 marketing year, 2.7 times higher than what was imported in the 2017 marketing year, showing increased customer preference.

 

Pakistan is the sixth most populous nation in the world with a population of over 193 million in 2016. It is also one of the youngest countries — 63 percent of the population is under the age of 25. There is long-term growth potential in this market for U.S. Soy.

 

Pakistan won’t be the next China or a fix-all solution for U.S. soybean growers, but a significant collection of little things can help move this market forward for the U.S. Soy industry.

 

The current poultry consumption rate in Pakistan is 7 kilograms (kg) per capita, and the global standard is 15 kg.

 

As Pakistan continues to rise to meet global standards, U.S. Soy will be impacted by every additional kilogram of poultry eaten."

 

Mike's note: I will say, keep in mind, people are taking time away from their families, trying to find other world buyers for those soybeans your growing. Somebody has to do it, right?

 

What say you?

 

Thanks,

 

Mike

 

 

Senior Contributor
Posts: 450
Registered: ‎08-02-2012
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Re: Floor Talk, December 17, 2018

Nice article, however I think a sigh of relief for farmers is a very generous way of saying at least your not losing more money. Pakistan is definitely some positive news hope the numbers pick up. On s side note these people you speak of trying to find buyers, is this not their job? Also, depending on which way they voted in 2016 maybe they’re feeling a little guilty, because this should never have happened in the first place. Actions have consequences and those responsible have a responsibility to act.