Floor Talk February 12

[Tony_Dreibus]

At the close:

At the close, the March corn futures settled 1 1/2 cent lower at $3.58 3/4. March soybean futures ended 3/4 of a cent lower at $8.72 3/4. 
March wheat futures closed 3/4 of a cent lower at $4.57 1/2. March soymeal futures finished $1.70 per short ton lower at $262.00. March soyoil futures closed $0.21 higher at $31.80.  
In the outside markets, the Brent Crude oil market is $2.94 higher per barrel, the U.S. dollar is higher, and the Dow Jones Industrials are 268 higher.

Mike

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At mid-session:

At mid-session, the March corn futures are trading 1/4 of a cent lower at $3.60. March soybean futures are 1/2 of a cent lower at $8.73. 
March wheat futures are trading 1 cent higher at $4.59. March soymeal futures are $0.90 per short ton lower at $262.80. March soyoil futures are trading $0.24 higher at $31.83.  
In the outside markets, the Brent Crude oil market is $2.93 higher per barrel, the U.S. dollar is higher, and the Dow Jones Industrials are 221 higher.

Jack Scoville, The PRICE Futures Group Senior Market Analyst, says that it has been a slow day today with prices trading both sides of unchanged.  
“Soybean oil has been a feature due to the breakout higher in palm oil prices in Malaysia,” Scoville says.  
“Short production over in that part of the world due to El Nino.  But beans a little lower, and maybe some sales were getting done.”
He adds, “Corn has been trying to hold higher, and based on the crude oil rally it might finally show an uptick.”  
There is some Safrinha (Brazil’s corn crop) selling showing up from Brazil in Sep and Dec on the rally.  Not real sure why wheat is higher, but at least Egypt bought a cargo.  Overall a light volume day with most I think willing to get through the 3 day weekend to see what news headlines come out.  Been a wild week and I think people are just willing to get to the close and the weekend.”

Mike North, President Commodity Risk Management analyst, says that a lack of fundamental news leaves the trade in the hands of chart watchers.  
“Today finds further technical weakness in soybeans after yesterday's high tested and confirmed an ongoing triangle. Movement back towards a 5 month trend line creates support for the market,” North says.  
This comes on the heels of yesterday's short covering episode that led soybeans higher before retreating into the close, North says.  
“Follow through weakness has defined Friday's trade with only mild fallout.  On a week of lower trade, the fact that prices have to some degree begun to stabilize gives hope for the week ahead that buyers may view the stall as an entry opportunity.”

Mike

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At the open:

At the open, the March corn futures are trading 1/4 of a cent lower at $3.60. March soybean futures are 2 cents lower at $8.71. 
March wheat futures are trading 2 1/2 cents higher at $4.60. March soymeal futures are $1.80 per short ton lower at $261.90. March soyoil futures are trading $0.22 higher at $31.81.  
In the outside markets, the Brent Crude oil market is $1.57 higher per barrel, the U.S. dollar is higher, and the Dow Jones Industrials are 109 higher.

Mike

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Good morning. 

It looks like some short-sellers are buying back their contracts in wheat and exiting the market after prices yesterday touched the lowest in six years. Export sales were pretty miserable for corn and wheat, but not bad for soybeans. 

At 6:15 am:

Early calls:

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

Trackers:

Overnight wheat was higher while corn and beans were little changed.  

Brent Crude Oil = 4.9% higher

West Texas Intermediate Crude Oil = 5% higher.

Dollar = up 0.2%.

Wall Street = Stock futures moderately higher as investors get back into equities. 
World Markets = Global stocks cautiously higher as oil futures surge.