Floor Talk December 27
At the close:
At the close, the March corn futures settled 9 1/4¢ higher at $3.55. January soybean futures finished 25 3/4¢ higher at $10.14 3/4, while March soybean futures closed 26 3/4¢ higher at $10.24 1/4. March wheat futures finished 16¢ higher at $4.09 1/2. January soy meal futures finished $10.00 short ton higher at $321.60. January soy oil futures settled $0.52 higher at 35.40¢ per pound. In the outside markets, the Brent crude oil market is $0.82 per barrel higher, the U.S. dollar is lower, and the Dow Jones Industrials are 27 points higher at 19,960 points.
At 10:00am, the March corn futures are 8¢ higher at $3.54. January soybean futures are 22 1/4¢ higher at $10.11, while March soybean futures are 22 1/4¢ higher at $10.19. March wheat futures are 14 1/4¢ higher at $4.07. January soy meal futures are $7.00 short ton higher at $318.60. January soy oil futures are $0.66 higher at 35.54¢ per pound. In the outside markets, the Brent crude oil market is $0.65 per barrel higher, the U.S. dollar is lower, and the Dow Jones Industrials are 37 points higher at 19,971 points.
Jack Scoville, The PRICE Futures Group’s Senior Market Analyst, says that the rally seems to be coming from forecasts for hot and dry weather in central and northern Brazil for the next couple of weeks.
“It is soybean flowering time, or flowering is just beginning depending on the area. Plus, the northern Brazilian region needs frequent rains. Instead, the forescast calls for dry and somewhere near 100F for temps. Not the reason for strong yield ideas.”
Scoville adds, “All of these markets are oversold. So, I think specs are buying to cover before the end of the year, too. Plus, a lot of talk the index funds will add grains at the rebalancing next month. So, some are buying to get ahead of the big guys. Not a big volume day despite the volatility.”
Deanna Hawthorne-Lahre, StatFutures co-founder and trader, says that open interest physics bounce in my books.
"None of the hard cores that I tweet with are involved in the markets, as we just let the funds have at it ahead of the year end close. Rains in SA over the weekend, so this is surely short covering and not a market move. The dollar is stiff at 103, with higher USDA numbers in view this month, as well. Would not be surprised to see a stiff break this week as well as these funds guys never are on the same page with their plans," Hawthorne-Lahre says.
At the open:
At the open, the March corn futures are 8¢ higher at $3.53. January soybean futures are 14¢ higher at $10.03, while March soybean futures are 14¢ higher at $10.11. March wheat futures are 10 1/4¢ higher at $4.03. January soy meal futures are $4.30 short ton higher at $315.90. January soy oil futures are $0.64 higher at 35.52¢ per pound. In the outside markets, the Brent crude oil market is $0.57 per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 42 points higher.
Soybeans were higher in overnight trading, as were the grain, as buyers look to jump back into the market. Beans were up a dime and corn rose about 3 cents in overnight trading. Wheat futures were up about a nickel. In other news, rain in Argentina has been weighing on prices recently, but it seems the precip over the weekend missed some major growing areas, according to forecasters.
Here's what happened overnight:
Brent Crude Oil = 0.1% higher.
West Texas Intermediate Crude Oil = 0.3% higher.
Dollar = up 0.2%.
Wall Street = U.S. stock futures little changed in overnight trading.
World Markets = Global stocks higher as oil prices rise.