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Veteran Contributor

Floor Talk December 20

At the close:

At the close, the March corn futures closed 3¢ lower at $3.50 1/4. January soybean futures finished 16 1/4¢ lower at $10.05 1/4, while March soybean futures finished 16 1/4¢ lower at $10.15 3/4. March wheat futures closed 1 3/4¢ lower at $4.03 1/4. January soy meal futures ended $3.40 short ton lower at $308.80. January soy oil futures settled $0.50 lower at 36.06¢ per pound.  In the outside markets, the Brent crude oil market is $0.16 per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 71 points higher at 19,954. As of this writing, the Dow had not reached its record-high of 20,000. But, NASDAQ did hit a new all-time record.

 

Mike

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At 11:10am:

The markets are trading at the day's lows.

 

At mid-session:

At mid-session, the March corn futures are 3 1/2¢ lower at $3.49. January soybean futures are 17 1/2¢ lower at $10.04, while March soybean futures are 17¢ lower at $10.15. March wheat futures are 1¢ lower at $4.04. January soy meal futures are $4.20 short ton lower at $308.00. January soy oil futures are $0.46 lower at 36.10¢ per pound.  In the outside markets, the Brent crude oil market is $0.18 per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 62 points higher.

 

DeAnna Hawthorne-Lahre, StatFutures co-founder and trader, says that the soybean market is giving back its early December gains.
“The soybean market is eroding from big rally the past few weeks,” Hawthorne-Lahre says.
She adds, “The worst kept secret among pros is the funds being long a big unit of beans and short units of corn and wheat. Informa dropped the big one on the bean longs when they forecasted a 89+ mill acre bean crop next year.” In addition, the rains hitting the Argentina’s crops to alleviate any dry concerns, she says.
“Wheat is stiff on the break, as the arctic blast out on the High Plains has sparked conversations of winterkill, keeping bears at bay. The protein still driving wheat inter-market internals as well.
And, end-users are paying edges to deliver grains before new years, indicating to me that we will have movement in early January under the new tax regime,” Hawthorne-Lahre says.

 

 

Mike

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At 9:05am:

In early trading, the March corn futures are 1 1/4¢ lower at $3.52. January soybean futures are 11 1/2¢ lower at $10.10, while March soybean futures are 11 1/2¢ lower at $10.20. March wheat futures are 1/2¢ higher at $4.05. January soy meal futures are $2.70 short ton lower at $309.50. January soy oil futures are $0.41 lower at 36.15¢ per pound.  In the outside markets, the Brent crude oil market is $0.63 per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 90 points higher.

 

Mike

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Soybeans were lower overnight as rain falls in Argentina, adding to thoughts that South America is going to have another big crop. Beans lost about 9 cents, while corn was down a penny in overnight trading. Chicago wheat was down about 1.5 cents and KC wheat lost about a cent. Fertilizer giant Mosaic bought Vale SA's fertilizer business, which includes several facilities in Brazil, Argentina and Canada. Just another round of consolidation in the industry. 
 

Here's what happened overnight:

 

Brent Crude Oil = 0.9% higher.

West Texas Intermediate Crude Oil = 0.4% higher.

Dollar = up 0.5%.

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

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7 Replies
Honored Advisor

Re: Floor Talk December 20

It's time to take a vacation Tony.........We need a change in the market direction.   Merry Christmas!

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Veteran Contributor

Re: Floor Talk December 20

Tiger believe me if I could give y'all higher prices for Christmas I'd definitely be all over it. What're you thinking for the new year? We going to see higher prices at some point or what???

 

Just talked to a farmer down here in Texas and he said they're only planting a little rice this year, but not near as much as he usually does, and no wheat or beans whatsoever. That's all very unusual for him. He said these prices are forcing some of the younger guys to head to town and he wouldn't be surprised to see a bit more of an exodus if they don't improve. 

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Honored Advisor

Re: Floor Talk December 20

Most guys in my area usually stick to a rotation.  However, I have heard that there are a few guys thinking ALL soybeans or spending way less on their corn crop. I will be staying with my rotation.

As far as higher prices.....if I didn't think we'd have better prices at some point, I would be quitting.

 

BTW, There are a lot of older guys still farming around here that have held on due to the better prices we had in 12, 13, & 14.   At some point, they are gonna walk away from farming and there will be a ton of ground coming up for sale.

 

My advice is..........(and I think about this quite often)......Don't be the last one to have a farm sale.   Smiley Wink

 

Thanks Tony!

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Veteran Contributor

Re: Floor Talk December 20

Hahaha that's really good advice -- nobody wants to be the last one on the road to sell. Well I sure hope it turns around or we're not going to have anybody left to grow our food. Good luck and hope you have a Merry Christmas up your way. I'll be keeping you guys entertained, or not, for the duration as we went away for Thanksgiving. Hopefully Mike will give me a day off or two sometime in 2017. 

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Veteran Advisor

Re: Floor Talk December 20

Tony,

 

Can you elaborate on the new tax environment in 2017 mentioned in your post?

 

TIA

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Honored Advisor

Re: Floor Talk December 20

Tony is the Typical farmer,  always tax planning...

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Honored Advisor

Re: Floor Talk December 20

it was one of those statements that is just foolish to make................... "new tax regime"  

 

Was that quote made in a bar?  Smiley Happy

 

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