Floor Talk February 21

[Tony_Dreibus]

After the close:

USDA issues export sales correction. FAS Program Announcement FAS-ESR-020-17, issued at 9:00 a.m. on Feb. 21, which announced export sales of 104,704 metric tons of corn for delivery to Japan during marketing year 2016/2017 and 164,592 metric tons for marketing year 2017/2018 was reported in error. The correct announcement is as follows:

-Export sales of 111,200 metric tons of corn for delivery to unknown destinations during the 2016/2017 marketing year, and

--Export sales of 138,650 metric tons of wheat for delivery to unknown destinations. Of the total 44,100 metric tons of hard red winter, 22,450 metric tons of hard red spring wheat, 23,700 metric tons of white wheat, and 2,400 metric tons of durum wheat is for delivery during the 2016/2017 marketing year, and 22,200 metric tons of hard red winter wheat, 11,200 metric tons of hard red spring wheat, and 12,600 metric tons of white wheat is for delivery during the 2017/2018 marketing year.

The marketing year for corn began Sept. 1.and wheat began June 1.

Mike

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At the close:

At the close, the March corn futures finished 1¢ higher at $3.69 1/4, while December futures finished 1 1/2¢ higher at $3.5 3/4. March soybean futures finished 6 1/4¢ lower at $10.26 1/4. November soybean futures closed 3 3/4¢ lower at $10.14 1/2. May wheat futures ended 5 3/4¢ lower at $4.49 3/4. March soy meal futures finished $2.20 per short ton lower at $337.40. May soy oil futures closed $0.21 lower at 32.95¢ per pound.  In the outside markets, the Brent crude oil market is $0.61 per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 108 points higher.

Dustin Johnson, EHedger’s Senior Strategist, says that the funds came to the rescue of corn.

"The Funds were adding corn long last week, it looks like this is a continuation of that. We are seeing it in the spreads as well. Dec-Dec climbed 2 cents today. Other than that I don't see a fundamental shift as to why."

Mike

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At mid-session:

At mid-session, the March corn futures are unchanged at $3.68, while December futures are even at $3.94. March soybean futures are 4 1/4¢ lower at $10.28. November soybean futures are 3 1/4¢ lower at $10.15. May wheat futures are 3 1/2¢ lower at $4.52. March soy meal futures are $1.60 per short ton lower at $338.00. May soy oil futures are $0.24 lower at 32.92¢ per pound.  In the outside markets, the Brent crude oil market is $1.06 per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 85 points higher.

Mike

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At 9am:

In early trading, the March corn futures are 1¢ lower at $3.67, while December futures are 3/4¢ lower at $3.93. March soybean futures are 1/2¢ lower at $10.32. November soybean futures are unchanged at $10.18. May wheat futures are 4 3/4¢ lower at $4.50. March soy meal futures are $0.20 per short ton higher at $339.80. May soy oil futures are $0.26 lower at 32.90¢ per pound.  In the outside markets, the Brent crude oil market is $0.95 per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 89 points higher.

Mike

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Corn and beans were higher overnight as forecasters are now saying the favorable weather in Argentina may be too favorable -- that the rainfall may delay the start of harvest in some parts of the country. Corn was up a penny and beans gained 6 cents. Wheat was down about 2 cents overnight. Deere reported earnings on Friday and said it expects agricultural markets to stabilize and sales globally to increase for the first time in three years. The only problem is it sees a jump in sales in South America but declining revenues, again, in the US and Canada. In weather news, much of central Nebraska and western South Dakota are in so-called red flag warnings where extremely dry weather may cause fires to spread quickly. 

Here's what happened overnight:

Brent Crude Oil = 1.4% higher.

West Texas Intermediate Crude Oil = 1.6% higher.

Dollar = up 0.6%.

Wall Street = U.S. stock futures higher in pre-market trading.

World Markets = Global stocks mixed on higher oil, lower bank stocks.