Floor Talk December 17, 2020
At the close:
At the close, the March corn futures settled 5 1/4¢ higher at $4.32 1/2. May corn futures ended 5¢ higher at $4.34 3/4.
January soybean futures closed 17 1/2¢ higher at $12.01 1/4. March soybean futures finished 17 1/2¢ higher at $12.05 1/2.
March wheat futures finished 10 1/4¢ higher at $6.08 3/4.
Jan. soymeal futures settled $3.40 per short ton higher at $397.90.
Jan. soy oil futures closed 0.88 of a cent higher at 39.93¢ per pound.
In the outside markets, the NYMEX crude oil market is $0.51 per barrel higher (+1.07%) at $48.33. The U.S. dollar is lower, and the Dow Jones Industrials are 125 points higher (+0.42%) 30,279 points.
At midsession, the March corn futures are 1 3/4¢ higher at $4.29. May corn futures are 1 3/4¢ higher at $4.31.
January soybean futures are 7 3/4¢ higher at $11.91. March soybean futures are 8 1/2¢ higher at $11.96 1/2.
March wheat futures are 6 1/2¢ higher at $6.05.
Jan. soymeal futures are $1.80 per short ton higher at $396.30.
Jan. soy oil futures are 0.70 of a cent higher at 39.75¢ per pound. In the outside markets, the NYMEX crude oil market is $0.39 per barrel higher (+0.98%) at $48.21. The U.S. dollar is lower, and the Dow Jones Industrials are 100 points higher (+0.33%) 30,255 points.
Separately, the USDA’s Weekly Export Sales Report Thursday shows strong demand figures for corn.
Corn= 1.93 million metric tons vs. the trade’s expectations of between 800,000 mmt.-1.60 mmt. Unknown was the biggest buyer.
Soybeans= 1.01 mmt. vs. trade’s expectations of 400,000 mmt.-900,000 mt.
Wheat= 561,400 mt.
Soybean meal= 261,200 mt.
Because federal government agencies will be closed on Thursday, December 24, the scheduled Export Sales Report for the week ending December 17 will be published on Wednesday, December 23, at 8:30 a.m. EST.
Bob Linneman, Kluis Advisors, says that the soybean market may be making a statement, after it failed to push through the $12 mark Wednesday morning.
“It appears the bears are more willing to be big sellers against resistance. They are likely placing stops just above the old highs. What has changed in the last week to push soybean prices 50¢ higher than the low seven days ago? Daily export sales reports remain quiet. South American weather has maintained expected forecasts. The most likely catalyst is that some analysts are starting to update production estimates in South America. These updates are proving the early-season dry spots were a problem and, in some areas, continue to be a problem,” Linneman stated in a daily note to customers.
Linneman added, "The likelihood of the $12 mark holding as resistance for much longer seems small if the headlines remain constant. The bull camp started gaining momentum when the bears failed to break January futures below support at the 30-day average."
Re: Brazil rain
Not much rain in Brazil's forecast for next week but good shot the last week of Dec. But that's two weeks out and a lot can change in two weeks.
The truth is, Brazil's early bean crop is running out of time. Still not too late but getting later every day.