Floor Talk February 27

[Tony_Dreibus]

At the close:

At the close, the May corn futures settled 2 1/2¢ lower at $3.68 1/4, while December futures settled 2 1/4¢ lower at $3.88 3/4. May soybean futures finished 2 1/4¢ lower at $10.22. November soybean futures ended 3/4¢ lower at $10.06 1/4. May wheat futures finished 9 1/4¢ lower at $4.38 3/4. May soy meal futures closed $0.10 per short ton lower at $335.60. May soy oil futures finished $0.04 lower at 32.63¢ per pound.  In the outside markets, the Brent crude oil market is $0.19 per barrel higher, the U.S. dollar is lower, and the Dow Jones Industrials are 19 points higher.

Mike

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At mid-session:

At mid-session, the May corn futures are 2 1/4¢ lower at $3.68 1/4, while December futures are 1 1/4¢ lower at $3.89 1/2. May soybean futures are 5¢ lower at $10.19. November soybean futures are 3 1/2¢ lower at $10.03. May wheat futures are 8 1/4¢ lower at $4.39 3/4. May soy meal futures are $0.40 per short ton lower at $335.30. May soy oil futures are $0.28 lower at 32.39¢ per pound.  In the outside markets, the Brent crude oil market is $0.27 per barrel higher, the U.S. dollar is lower, and the Dow Jones Industrials are 10 points lower.

Jack Scoville, The PRICE Futures Group’s senior market analyst, says that a lot of guys are rolling and or folding before first notice day deadline for the March futures, tomorrow. 
“We are being told to expect some pretty big deliveries.  Some selling in soybeans, due to the weaker export sales report last week and the inspections today implying that demand is less,” Scoville says.  Some bird flu talk around from China to account for the less demand.” 
He adds, “Wheat is lower but not sure why, trying to talk weaker world prices I think, but we should be firm and holding with the dry weather in the Prairies.” 
Corn is boring, Scoville says.
“The selling in soybeans and wheat is carrying over into the corn market. But, the sales and weekly grain inspections for export are good and should provide support.  Mild weather has people working in the fields with some planting reported in rice anyway, near the gulf coast and probably corn in near the Texas Gulf Coast,” Scoville says.

Mike

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At 9am:

In early trading, the May corn futures are 1 1/2¢ lower at $3.69 1/4, while December futures are 1¢ lower at $3.90. May soybean futures are 1/2¢ lower at $10.23. November soybean futures are 3/4¢ lower at $10.06. May wheat futures are 3 1/4¢ lower at $4.44. May soy meal futures are $0.80 per short ton higher at $336.50. May soy oil futures are $0.28 lower at 32.39¢ per pound.  In the outside markets, the Brent crude oil market is $0.41 per barrel higher, the U.S. dollar is lower, and the Dow Jones Industrials are 17 points lower.

Mike

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Wheat futures declined on follow-through selling after last week's IGC report showing global inventories would tick up. Wheat lost about 3 cents, corn was down 1/4 cent and soybeans rose 2 cents in overnight trading. The decline in wheat belies what money managers think -- they raised their bets on higher hard-red winter wheat prices to the largest level in almost three years after the USDA said domestic output year-over-year would fall 20%. Of course that's not a huge surprise considering acreage will fall to the lowest since 1909. In weather, it's going to be hot and dry in the southern Plains today so if you're there, don't light a match outside. 

Here's what happened overnight:

Brent Crude Oil = 0.9% higher. 

West Texas Intermediate Crude Oil = 0.8% higher.

Dollar = up 0.1%.

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

World Markets = Global stocks mixed as currencies fluctuate.