Floor Talk February 11

[Tony_Dreibus]

Bankers report a higher demand for farm loans, but credit availability is not there. See the full story on today's release of the farm economy from the Fed Reserve Banks of St. Louis and Kansas City.

Full story:  More Farmers Look For Loans and Help Repaying Loans

Is this the case in your neighborhood? One economist told me that this report reflects reality. What say you?

Mike

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After the close:

Funds bought 9,000 soybean contracts today, sero corn and sold 4,000 wheat contracts.

Mike

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At the close:

At the close, the March corn futures settled unchanged at $3.60 1/4. March soybean futures finished 11 1/4 cents higher at $8.73 1/2. 
March wheat futures finished 3 cents lower at $4.58 1/4. March soymeal futures closed $2.70 per short ton higher at $263.70. March soyoil futures closed $0.58 higher at $31.59.  
In the outside markets, the Brent Crude oil market is $0.85 lower per barrel, the U.S. dollar is lower, and the Dow Jones Industrials are 240 lower.

Mike

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At 10:20am:

Farm markets rally, a bit, while the stock market plunges!

At 10:20am, the March corn futures are trading 1 3/4 cents higher at $3.62. March soybean futures are 8 cents higher at $8.70. 
March wheat futures are trading 2 1/4 cents higher at $4.63. March soymeal futures are $1.50 per short ton higher at $262.50. March soyoil futures are trading $0.53 higher at $31.54.  
In the outside markets, the Brent Crude oil market is $0.73 lower per barrel, the U.S. dollar is lower, and the Dow Jones Industrials are 352 lower.

Jason Ward, Northstar Commodity Investment Co, grain analyst, says that the markets are getting a bump from weather outlooks and improved demand.
“We saw good weekly export totals and a possible reversal in soymeal prices from new contract lows to now trading higher. I called the verbage from the weather guys possibly supportive, as I am seeing them now say “excessive” rainfall is now in the forecast for Argentina.”

Matt Pierce, Futures International floor trader at the CME Group says outside investors are being forced to cover shorts in ag markets.

"I think its a margin issue for comomdities overall. Getting squeezed on crude longs, covering shorts in agricultural commodities."

Mike

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At 9:25am:

Corn must be getting cheap enough. For the second day in a row, someone has stepped in and  bought a fresh batch of U.S. corn. On Thursday, private exporters reported to the U.S. Department of Agriculture export sales of 152,400 metric tons of corn for delivery to unknown destinations during the 2015/2016 marketing year.

The marketing year for corn began Sept. 1.

Mike

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At the open:

At the open, the March corn futures are trading 1 cent lower at $3.59. March soybean futures are 1 1/2 cents higher at $8.63 3/4. 
March wheat futures are trading 1 1/2 cents higher at $4.62. March soymeal futures are $0.40 per short ton lower at $260.80. March soyoil futures are trading $0.18 higher at $31.19.  
In the outside markets, the Brent Crude oil market is $0.50 lower per barrel, the U.S. dollar is lower, and the Dow Jones Industrials are 202 lower.

Mike

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Good morning. 

Wheat and soybeans were higher overnight as Fed Chair Janet Yellen's comments concerning the economy yesterday are pushing down the value of the greenback and effectively making  U.S. products cheaper on an international level. That, hopefully, will at least sway a few importers to give U.S. inventories a look. 

Still, crude and stock futures are lower so it wouldn't be surprising to see a broad-based sell-off this morning. 

At 6:15 am:

Early calls:

Wheat 1-2 higher, corn unchanged to 2 higher and soybeans 4-6 higher.  

Trackers:

Overnight wheat and soybeans higher, corn unchanged.  

Brent Crude Oil = 1.5% lower.

West Texas Intermediate Crude Oil = 3.8% lower.

Dollar = down 0.5%.

Wall Street = Stock futures lower overnight on falling oil futures. 
World Markets = Global stocks falling as global concerns resume.