Floor Talk February 12

[marketeye]

At the close:

The March corn futures contract settled 1 1/2 cents lower at $4.40. The March soybean futures contract ended 11 3/4 cents lower at $13.23. March wheat futures closed 3 1/4 cents lower at $5.87 per bushel. The March soymeal futures contract ended $5.70 per short ton lower at $443.50. The March soyoil futures finished $0.14 higher at $38.99.
In the outside markets, the NYMEX crude oil is $0.17 per barrel higher, the dollar is higher and the Dow Jones Industrials are 55 points lower.

One analyst says, "Talk of more Chinese cancellations is the primary bear force in the market.  I AM HEARING ALSO THAT SOME CARGOS OR SOYBEANS ARE BEING HELD FOR TESTING OF THE GMO CORN IT REJECTED AS FOREIGN MATTER AS WELL.  No one wil want to buy if that is the case, and we could lose a lot of biz if all the unshipped stuff gets cancelled because of this, but not all will.  They are playing hardball I think.  Rains are coming to dry [parts of Brazil this weekend and Arg should turn drier, both good things.  Did not see much news in corn or wheat which is probably why neither could hold early gains with the weaker beans."

Mike

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At mid-session:

The March corn futures contract is trading 1/4 of a cent lower at $4.41. The March soybean futures contract is 6 3/4cents lower at $13.28. March wheat futures are 1/2 of a cent higher at $5.90 per bushel. The March soymeal futures contract is trading $3.80 per short ton lower at $445.40. The March soyoil futures are trading $0.32 higher at $38.17.
In the outside markets, the NYMEX crude oil is $0.39 per barrel higher, the dollar is higher and the Dow Jones Industrials are 36 points lower.

Mike

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At the open:

The March corn futures contract is trading 1 cent lower at $4.40. The March soybean futures contract is 8 cents lower at $13.26. March wheat futures are 3 cents higher at $5.87 per bushel. The March soymeal futures contract is trading $5.70 per short ton lower at $443.50. The March soyoil futures are trading $0.09 higher at $38.94.
In the outside markets, the NYMEX crude oil is $1.20 per barrel lower, the dollar is higher and the Dow Jones Industrials are 28 points higher.

Mike

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At 8:10am:

Well, it looks like the Chinese cancellations are starting. The government must have known something when they left the soybean ending stocks at 150 million bushels Monday.

Anyway, here's the latest:

--USDA announces Wednesday that China canceled 272,000 tons of U.S. soybeans for 2013-14 delivery.

--USDA announces Wednesday that China bought 240,000 tons of U.S. soybeans for 2014-15 delivery.

So, a positive net transaction of -32,000 tons.

Mike

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At 7:50am:

Early calls: Corn is seen 1-2 cents lower, soybeans 2-4 cents lower, and wheat 1-2 cents lower.

Trackers:
Overnight grain, soybean markets=Trading lower.

NYMEX Crude Oil=$0.61 per barrel higher.
Dollar=Higher.

Wall Street=Seen flat-to-higher. Deere announced Wednesday that its First quarter net income was up 5%, but it sees a slowdown in farm and industrialequipment this year. The company sees its equipment sales falling 6%.

World Markets=Asia/Pacific stocks were higher, Europe stocks higher.

More in a minute,

Mike