Floor Talk February 23

[Tony_Dreibus]

At the close:

At the close, the May corn futures finished 5 3/4¢ lower at $3.72 1/2, while December futures closed 5 1/2¢ lower at $3.91 3/4. May soybean futures closed 11¢ lower at $10.22 1/2. November soybean futures closed 9¢ lower at $10.04. May wheat futures closed 2 1/2¢ lower at $4.53. May soy meal futures ended $4.30 per short ton lower at $335.20. May soy oil futures closed $0.41 lower at 32.59¢ per pound.  In the outside markets, the Brent crude oil market is $0.83 per barrel higher, the U.S. dollar is lower, and the Dow Jones Industrials are 50 points higher.

Mike

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At 11:45am:

The U.S. Weekly Ethanol report shows a decline in production, this past week.

According to EIA data analyzed by the Renewable Fuels Association, ethanol production averaged 1.034 million barrels per day (b/d)—or 43.43 million gallons daily. That is down 6,000 b/d from the week before and 27,000 b/d removed from last month’s record high. The four-week average for ethanol production stood at 1.047 million b/d for an annualized rate of 16.05 billion gallons.

Stocks of ethanol stood at 22.7 million barrels. That is a 0.8% increase from last week.

Mike

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At mid-session:

At mid-session, the May corn futures are 4¢ lower at $3.74, while December futures are 3 3/4¢ lower at $3.93. May soybean futures are 9 1/4¢ lower at $10.24. November soybean futures are 7 1/4¢ lower at $10.06. May wheat futures are 1¢ lower at $4.55. May soy meal futures are $3.70 per short ton lower at $335.80. May soy oil futures are $0.38 lower at 32.62¢ per pound.  In the outside markets, the Brent crude oil market is $0.81 per barrel higher, the U.S. dollar is lower, and the Dow Jones Industrials are 55 points higher.

Jason Roose, U.S. Commodities grain analyst, says that multiple factors are pressuring the grain markets today.

"With larger acres projected to be planted based on USDA government projections, improving South America corn and bean yields and with a  South Korea corn cancellation from their export lineup,U.S. prices may be overvalued with Brazil and Argentina competing for market share."

Mike

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At 9am:

In early trading, the May corn futures are even at $3.78, while December futures are 1/4¢ lower at $3.97. May soybean futures are 6 3/4¢ lower at $10.26. November soybean futures are 6 1/4¢ lower at $10.07. May wheat futures are 1/4¢ lower at $4.55. May soy meal futures are $2.70 per short ton lower at $336.80. May soy oil futures are $0.29 lower at 32.71¢ per pound.  In the outside markets, the Brent crude oil market is $1.07 per barrel higher, the U.S. dollar is lower, and the Dow Jones Industrials are 18 points higher.

Mike

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Beans and grains were little changed overnight ahead of the USDA outlook forum. Investors are likely awaiting some planting projections and other data that comes out of the department today and tomorrow. The annual event can be a market mover, though changes in projections will probably be small. Beans were down 3 cents while corn and wheat were both off by less than a penny. In weather news, a large storm continues to impact the upper Midwest. A blizzard warning is in effect for counties where four states -- South Dakota, Minnesota, Nebraska and Iowa -- intersect.  As much as a foot of snow is possible in the area, according to the National Weather Service. Meanwhile in central Texas, it's supposed to be almost 90 degrees today. 

Here's what happened overnight:

Brent Crude Oil = 1.5% higher.

West Texas Intermediate Crude Oil = 1.5% higher.

Dollar = down 0.1%.

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

World Markets = Global stocks lower amid concerns about global currencies.