Floor Talk, February 28, 2019
At the close:
At the close, the May corn futures finished 3¢ lower at $3.70 3/4. July futures ended 2 3/4¢ lower at $3.79.
May soybean futures closed 6 1/2¢ lower at $9.10 3/4. July soybean futures finished 6 1/2¢ lower at $9.24.
May wheat futures settled 7 1/4¢ lower at $4.59 1/2.
May soymeal futures closed 3.20 per short ton lower at $306.00. May soy oil futures ended 0.13 higher at 30.25¢ per pound.
In the outside markets, the NYMEX crude oil market is $0.30 higher, the U.S. dollar is lower, and the Dow Jones Industrials are 43 points lower.
Jack Scoville, PRICE Futures Group, says that the markets ignored the strong export sales.
“Export sales were great on all markets and should have helped. But there is still a lot of China uncertainty and Trump walked out on North Korea’s Kim, so maybe a little more uncertainty with China,” Scoville says.
Scoville added, “The funds are doing the selling, not seeing any cash moving. Going to be real cold so winterkill possible in wheat and no one going to sell. I think we can rally a bit tomorrow and maybe into next week with the change of the month.”
Happy final day of February.
In early trading, the May corn futures are 2¢ lower at $3.71. July futures are 1 3/4¢ lower at $3.80.
May soybean futures are 3/4¢ lower at $9.16. July soybean futures are 3/4¢ lower at $9.29.
May wheat futures are 2 1/2¢ lower at $4.64.
May soymeal futures are 0.40 per short ton lower at $308.80. May soy oil futures are 0.08 higher at 30.20¢ per pound.
In the outside markets, the NYMEX crude oil market is $0.05 higher, the U.S. dollar is lower, and the Dow Jones Industrials are 22 points higher.
On Thursday, the USDA’s Weekly Export Sales Report strong corn, soybean and wheat figures. Plus, China was the biggest buyer of soybeans.
- Corn= 1.35 million metric tons vs. the trade’s expectations of between 700,000-1,300,000 mt.
- Soybeans= 2.196 mmt. vs. the trade’s expectations of between 600,000-1,200,000 mt.
- Wheat= 537,400 mt. the trade’s expectations of between 200,000-600,000 mt.
- Soybean meal= 152,600 mt. vs. the trade’s expectations of between 50,000-350,000 mt.
Separately Thursday, private exporters reported to the USDA the following activity:
- Export sales of 168,000 metric tons of corn for delivery to Mexico during the 2018/2019 marketing year.
- Export sales of 133,000 metric tons of corn for delivery to South Korea during the 2018/2019 marketing year.
The marketing year for corn began Sept. 1.
Re: Floor Talk, February 28, 2019
I certainly can't figure it out. Seen plenty of times where the USDA report came in just below the low expectation figure and that was the reason to drop soybeans 5 cents. So yesterday the USDA reports sales of more than 3 times the low expectation figure and soys drop 6 cents.