Floor Talk December 29
Remember, there will be no night trade on Monday night. It's an old fashioned hard open on Tuesday at 8:30 AM CST.
At the close:
At the close, the March corn futures settled 1 1/4¢ lower at $3.50. May futures are 1 1/4¢ lower at $3.59. Jan. soybean futures finished 5¢ higher at $9.61 3/4. March soybean futures finished 5¢ higher at $9.73. March wheat futures closed 3/4¢ lower at $4.27. March soy meal futures settled $0.70 per short ton higher at $316.80. January soy oil futures closed 0.55 higher at 33.26¢ per pound. In the outside markets, the NYMEX crude oil market is $0.41 higher, the U.S. dollar is lower, and the Dow Jones Industrials are 37 points lower.
What' going on with the market?
Jack Scoville, The PRICE Futures Group’s Senior Market Analyst, says that the markets are quiet, due to the funds mostly quiet going into the new year.
“They had been expected to buy corn and wheat and reduce some of the big short position they have, but so far that has not shown up and the way the market is acting I doubt it shows up into the close,” Scoville says.
He adds, “We will be all about SA weather when we come back, and it still looks mostly hot and dry in Argentina and southern Brazil. So, things might get a little more interesting next week.”
There are lighter than expected deliveries in the soy complex, today.
Cory Bratland, Kluis Commodities broker, says the markets are responding to South American weather and outside money.
“The funds hold rather hefty short positions in all three grains. Any potential weather issues in South America after the new year could be greeted with some buying,” Bratland says.
USDA Weekly Export Sales Report Thursday shows that corn sales beat expectations, soybeans within and wheat at the top end of expectations.
Corn= 1.34 million metric tons vs. the trade’s expectations of between 500,000-1,100,000 mt.
Soybeans= 1.05 million mt. vs. the trade’s expectations of between 800,000-1,900,000 metric tons.
Soybean meal= 305,900 mt. vs. the trade’s expectations of between100,000-300,000 metric tons.
Wheat= 540,500 mt. vs. the trade’s expectations of between 250,000-600,000.
In early trading:
At 9am, the March corn futures are 3/4¢ lower at $3.51. May futures are 3/4¢ lower at $3.59. Jan. soybean futures are 1 1/4¢ lower at $9.55. March soybean futures are 1 1/4¢ lower at $9.66. March wheat futures are 2 3/4¢ lower at $4.25. March soy meal futures are $0.90 per short ton higher at $317.00. January soy oil futures are 0.08 lower at 32.63¢ per pound. In the outside markets, the NYMEX crude oil market is $0.34 higher, the U.S. dollar is lower, and the Dow Jones Industrials are 4 points lower.
Soybeans and grains were little changed overnight, not a big shocker for the last day of the trading year. Volume will be light today so who knows which way prices will go. Soybeans were up a penny, corn was down a penny and wheat moved less than a penny. Good news for corn producers: ethanol production last week jumped to the second-highest in history, slightly behind the weekly record set at the start of the month. If you recall, the increased ethanol output has led the USDA to boost its projection for corn demand to make the biofuel in the WASDE report. Since then, production has remained robust. In weather news, it's going to be cold and wintry in the Midwest as a weather system stretching from South Dakota to Ohio dumps as much as 6 inches of snow in parts of Iowa and Indiana. Freezing fog is on tap for the southern Plains and in North Dakota, wind chills are expected to be as low as minus-50. It's cold in central Texas this morning with temperatures in the low 40s. See all the details in today's 3 Big Things at https://www.agriculture.com/news/three-big-things/3-big-things-today-december-29.
Well have a Happy New Year, and be safe out there, especially if you're going to be imbibing in some frivolity and shenanigans and tomfoolery on Sunday night. Get a designated driver, a taxi or an Uber and we'll see you on Jan. 2.
Brent Crude Oil = up 0.1%.
West Texas Intermediate = up 0.3%.
Dollar = down 0.4%.
Wall Street = U.S. stock futures higher in pre-bell trading.
World Markets = Global stocks higher overnight.