Floor Talk, February 24, 2020
At the close:
At the close, the March corn futures ended 4 3/4¢ lower at $3.72 1/2. May corn futures finished 4 1/2¢ lower at $3.76 1/2.
March soybean futures closed 16 1/4¢ lower at $8.74 1/4. May soybean futures settled 16 1/2¢ lower at $8.82 1/4.
May wheat futures finished 17 3/4¢ lower at $5.34 1/4.
May soymeal futures ended $2.80 per short ton lower at $292.00. May soy oil futures ended $1.14 cents lower at 29.87¢ per pound.
In the outside markets, the NYMEX crude oil market is $1.96 per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 889 points lower.
Sorry for the delayed reporting.
At midsession, the March corn futures are 5 3/4¢ ower at $3.71 1/2. May corn futures are 6¢ lower at $3.74 1/2.
March soybean futures are 18¢ lower at $8.72 3/4. May soybean futures are 18¢ lower at $8.81.
March wheat futures are 14 3/4¢ lower at $5.36 1/4.
May soymeal futures are $3.20 per short ton lower at $291.60. May soy oil futures are $1.04 cents lower at 29.97¢ per pound.
In the outside markets, the NYMEX crude oil market is $2.43 per barrel lower, the U.S. dollar is lower, and the Dow Jones Industrials are 845 points lower.
Britt O'Connell, Cash Advisor for Commodity Risk Management Group, says that the markets are reacting to the news regarding the spread of the Coronavirus. The news has vacillated greatly from nearly contained to news over the weekend that isolated outbreaks have now been confirmed in Italy, South Korea and Iran.
“The Dow is down nearly 800 points this morning as well as most all foreign markets. It appears that the market believes that the Coronavirus could have a long term effect on the marketplace.
With concern weighing on the financial space and no positive news to lift grains, we find corn and beans trading lower," O'Connell says.
She added, "On Friday, the USDA released its thoughts from the 2020 outlook forum, net net it was bearish for corn with a prediction for the largest corn crop in U.S. history and ending stocks that would be the highest since 1987/88. The soybean predictions were more friendly from the sheer numbers, with ending stocks at a friendly 320 million. The price projection that they put forward however was not incredibly promising at $8.80 per bushel, a very modest increase from 2019/20. A mild price projection move is blamed on very strong competition from South America."