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Veteran Advisor

Floor Talk, February 6, 2020

At the close:

At the close, the March corn futures finished 1 1/2¢ lower at $3.79 1/4. May corn futures ended 2¢ lower at $3.84 1/2.

March soybean futures settled 1 1/4¢ higher at $8.81 1/4. May soybean futures ended 1 1/2¢ higher at $8.94 1/2.

March wheat futures settled 5 3/4¢ lower at $5.56 1/4.


March soymeal futures finished $0.80 per short ton higher at $288.20.

 March soy oil futures closed $0.08 cents lower at 31.24¢ per pound.



In the outside markets, the NYMEX crude oil market is $0.10 per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 99 points higher.

Britt O'Connell, Cash Advisor for Commodity Risk Management Group, says that the markets are fairly quiet and continue to trade sideways.

“Without much by way of positive news, both corn and beans have no reason to move out of their comfort zone. Corn basis continues to do the heavy lifting, as farmers remain reluctant sellers. Soybean basis has improved as futures have dropped. Shipments of soybeans were strong in January, with Feb expecting the same. This is a good thing - the Chinese purchases made last fall are not being cancelled. With a large, maybe record, South America crop looming it may be hard to give the market reason to rise. Not much hitting the airwaves today,” O’Connell says.

Mike

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At midsession:

At midsession, the March corn futures are 3 3/4¢ lower at $3.77. May corn futures are 3 1/2¢ lower at $3.83.

March soybean futures are 1 1/4¢ higher at $8.81 1/4. May soybean futures are 1 1/2¢ higher at $8.94 1/2.

March wheat futures are 5¢ lower at $5.57.

March soymeal futures are $0.30 per short ton higher at $287.740.

 March soy oil futures are $0.08 cents higher at 31.40¢ per pound.



In the outside markets, the NYMEX crude oil market is $0.18 per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 28 points higher.

 

Mike

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At 9am:

In early trading, the March corn futures are 1 3/4¢ lower at $3.79. May corn futures are 1 1/2¢ lower at $3.85.

March soybean futures are 1 1/4¢ higher at $8.81 1/4. May soybean futures are 1 1/2¢ higher at $8.95 1/2.

March wheat futures are 3 3/4¢ lower at $5.58 1/4.

March soymeal futures are $0.40 per short ton lower at $287.40.

 March soy oil futures are $0.14 cents higher at 31.46¢ per pound.



In the outside markets, the NYMEX crude oil market is $0.16 per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 90 points lower.

Al Kluis, Kluis Advisors, says that the farm markets are caught in sideways pattern.

“As we patiently await increased demand out of China, the market remains a bit vulnerable due to coronavirus. So far this week, pressure on the grain prices has been well supported. However, it feels we will be stuck in a sideways trading range until we see China increase their demand, ” Kluis stated in a daily note to customers.

Kluis added, "The corn and soybean markets have been finding support this week. Until the bull spreads start working we will have a hard time rallying."

Separately, the USDA’s Weekly Export Sales Report Thursday shows strong demand figures.

Corn= 1.33 million metric tons vs. the trade’s expectations of between 600,000-1.5 mmt.

Soybeans= 707,800 metric tons vs. trade’s expectations of 400,000-875,000 mt.

Wheat= 338,600 mt. the trade’s expectations of between 300,000-725,000 mt.

Soybean meal= 212,700 mt. the trade’s expectations of 200,000-500,000mt.

 

Mike

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Frequent Contributor

Re: Floor Talk, February 6, 2020

I really wanna know what chuck abbott is on.

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