Floor Talk February 10

[Tony_Dreibus]

After the close:

Funds sold 1,000 corn contracts Wednesday, 500 soybean contracts. Meanwhile, they bought 4,000 wheat contracts.

Mike

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At the close:

At the close, the March corn futures settled 3/4 of a cent lower at $3.60 1/4. March soybean futures closed 1 cent lower at $8.62 1/4. 
March wheat futures finished 3 3/4 cents higher at $4.61 1/4. March soymeal futures ended $2.10 per short ton lower at $261.00. March soyoil futures closed $0.31 higher at $31.01.  
In the outside markets, the Brent Crude oil market is $0.45 lower per barrel, the U.S. dollar is higher, and the Dow Jones Industrials are 15 higher.

Mike

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At mid-session:

At mid-session, the March corn futures are trading 1/2 of a cent lower at $3.60. March soybean futures are unchanged at $8.63. 
March wheat futures are trading 3 1/2 cents higher at $4.61. March soymeal futures are $2.00 per short ton lower at $261.10. March soyoil futures are trading $0.29 higher at $30.99.  
In the outside markets, the Brent Crude oil market is $0.38 lower per barrel, the U.S. dollar is higher, and the Dow Jones Industrials are 5 lower.

Jason Roose, U.S. Commodities grain analyst, says that the markets are still reacting to Tuesday’s USDA reports.
“Grains will continue to trade mixed, after digesting the yesterday's modest negative crop report,” Roose says.
He adds, “Any firm tone will be limited by producer selling and competitive wheat values. A stronger dollar is not a positive for the grains today, nor is the softer energy trade.”

Mike

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If you missed it:

Private exporters reported to the U.S. Department of Agriculture export sales of 243,000 metric tons of corn for delivery to Japan during the 2016/2017 marketing year.

The marketing year for corn began Sept. 1.

Mike

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At 10am:

Although it doesn't import any U.S. corn, Russia announced Wednesday that it will ban any imports of U.S. corn or soybeans starting February 15. Why? Phytosanitary reasons. It will get what it needs from South America. C'mon Putin.

Mike

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At the open:

At the open, the March corn futures are trading 1 cent lower at $3.60. March soybean futures are 1 1/4 cents higher at $8.64. 
March wheat futures are trading 1/2 of a cent higher at $4.58. March soymeal futures are $0.10 per short ton higher at $263.20. March soyoil futures are trading $0.13 higher at $30.83.  
In the outside markets, the Brent Crude oil market is $0.11 lower per barrel, the U.S. dollar is higher, and the Dow Jones Industrials are 39 higher.

Mike

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Good morning. 

Corn and wheat were moderately lower overnight after the USDA raised its outlook for stockpiles beyond what analysts were expecting in a monthly report yesterday. Soybeans were slightly higher despite the government increasing its outlook for inventories. 
 

At 6:20 am:

Early calls:

Wheat 1-2 lower, corn 2-4 lower and soybeans little changed.  

Trackers:

Overnight wheat and corn lower, beans higher.  

Brent Crude Oil = 2.5% higher.

West Texas Intermediate Crude Oil = 2.2% higher.

Dollar = up 0.1%.

Wall Street = Stock futures higher overnight on rising oil futures. 
World Markets = Global stocks rising as global credit risks ease. 

[marketeye]

CME Reduces Cattle Futures Trading Hours:

Reduction of CME livestock trading hours: based on customer requests, CME livestock futures and options trading hours will be reduced to align with the period of greatest liquidity in these markets. During 2015, roughly 87 percent of daily livestock futures and options trades occurred during the proposed hours.
 
Effective Monday, February 29, and pending CFTC approval, the proposed trading hours for Live Cattle, Feeder Cattle and Lean Hog futures and options will be as follows:
o   CME Globex futures and options – 8:30 a.m. to 1:05 p.m. CT Monday to Friday
o   Open outcry options – 8:30 a.m. to 1:02 p.m. CT Monday to Friday
 
The daily settlement period and procedures for CME livestock contracts will remain unchanged.
 
·         Review of Worthing, South Dakota delivery point for Live Cattle: CME Group will conduct a public review with cattle customers to study if a discount is warranted at its Worthing delivery point for Live Cattle futures. The review will take place during the month of February and potential changes will be announced during Q1 of 2016.
 
·         Formation of a cattle market joint working group: CME Group will form a working group with the National Cattlemen’s Beef Association to discuss other possible enhancements to its cattle markets, including, but not limited to, circuit breakers and other measures to further heighten market quality.

What say you about the change?

Mike

[marketeye]

Good news! The weekly ethanol production numbers are higher than they were a week ago. However, the stocks are the highest they have been since 2010, according to the Renewable Fuels Association press release Wednesday.

"According to EIA data, ethanol production averaged 969,000 barrels per day (b/d)—or 40.70 million gallons daily. That is up 10,000 b/d from the week before. The four-week average for ethanol production stood at 968,000 b/d for an annualized rate of 14.86 billion gallons.

Stocks of ethanol stood at 23.0 million barrels. That is a 2.7% increase from last week and the highest level since EIA began publishing weekly data in June 2010."

Meanwhile, POET LLC, the second largest ethanol producer is either cutting production hours or shutting down a few plants for a few days in some Ohio and Indiana locations. So, this huge stock picture may be behind POET's situation. Keep in mind, the eastern Corn Belt ethanol producers may be feeling the longtail affect of a shorter corn crop in 2015.

What do you think? How are the ethanol plants doing around your place?

Mike

[ECIN]

Good question Mike - And being from the eastern corn belt - don't have  a good answer - We haul for a ethanol plant - and it has been VERY slow ! We are about to finish a job that was 112 mile to the plant - But they were a lot on basis than the river ( Ohio ) which they were a lot closer to . I have heard that Poet was been shutting down off and on or cut back there hours -

The basis has dropped 6 cents - they are at 25 as of a few minutes ago - and there dispatch is saying there just don't have nothing coming in - I did ask if there were getting any rail in from else where - and that was a no - but that was 10 days ago -

I called a company today to bid on a haul job from Louisville to Kansas - he said they have been overwelmed with calls - ( BTW it's organic beans )  I said there is just no grain moving and that is what everybody else had said  - and asked me what gives - Low prices was my best guess .