Floor Talk January 10
At the close:
At the close, the March corn futures settled 1 3/4¢ lower at $3.58 1/4, and new crop December 2017 futures finished 1¢ lower at $3.86 1/2 per bushel. March soybean futures closed 8 1/2¢ higher at $10.13 3/4, while November 2017 soybean futures ended 6 1/4¢ higher at $10.00. March wheat futures closed 1/2¢ lower at $4.26 3/4. March soy meal futures settled $3.60 short ton higher at $317.50. March soy oil futures closed $0.15 higher at 35.64¢ per pound. In the outside markets, the Brent crude oil market is $1.08 per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 12 points lower at 19,874 points.
At mid-session, the March corn futures are 2¢ lower at $3.58, and new crop December 2017 futures are 1 3/4¢ lower at $3.85 3/4 per bushel. March soybean futures are 4 3/4¢ higher at $10.10, while November 2017 soybean futures are 2 1/2¢ higher at $9.96. March wheat futures are 2¢ lower at $4.25. March soy meal futures are $2.20 short ton higher at $316.10. March soy oil futures are $0.02 lower at 35.47¢ per pound. In the outside markets, the Brent crude oil market is $0.61 per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 52 points higher at 19,939 points.
Matt Pierce, Futures international floor trader on the CME Group’s floor, says the soybean market is trading supply issues.
“The beans are slightly fired up over Argentina’s rains. But, overall, there is momentum and ability to stay above $10.00 per bushel, in spite of weaker Chinese crush margins,” Pierce says.
Regarding index rebalancing, there are no allocations into beans and bean oil markets, Pierce says. “They will see a small reduction.”
He adds, “Allocations into wheat and corn futures keep those markets from falling on a lack of fresh news. Still, many are waiting for the report on Thursday to "start" trading year.”
Michael Rusch, Sales Director- Ag/Commercial for Stewart-Peterson, says that Tuesday’s trading is light ahead of Thursday’s key USDA reports.
“Much of the weakness appears to be technical in nature, after prices stalled at the top of their ranges, a pattern that has played out repeatedly since harvest.”
In addition, Conab of Brazil came out with upgraded production estimates due to conducive weather, Rusch says.
“The March bean contract peaked at 10.15, putting it back above its 200-day moving average. But, the contract is mostly rangebound between 10.16 and 9.92-3/4. Nov made it to 10.00-3/4, a 1-1/2 week high before trimming gains. Brazil’s Conab said the country is likely to produce a record 103.8 million tons in the 2016/17 crop season, up from their Dec forecast of 102.45 mil tons due to favorable climate conditions. In the last crop season, Brazil harvested 95.4 mil tons.”
If you missed the 8am USDA Report, fresh corn exports were announced.
Private exporters reported to the U.S. Department of Agriculture the following activity:
- --Export sales of 130,000 metric tons of corn for delivery to Taiwan during the 2016/2017 marketing year; and
- --Export sales of 241,600 metric tons of corn for delivery to unknown destinations. Of the total 91,300 metric tons is for delivery during the 2016/2017 marketing year and 150,300 metric tons is for delivery during the 2017/2018 marketing year.
The marketing year for corn began Sept. 1
At the open, the March corn futures are 1 3/4¢ lower at $3.58, and new crop December 2017 futures are 1¢ lower at $3.86 per bushel. March soybean futures are 1/2¢ higher at $10.05, while November 2017 soybean futures are 3/4¢ lower at $9.93. March wheat futures are 1 1/4¢ lower at $4.26. March soy meal futures are $0.50 short ton lower at $313.40. March soy oil futures are $0.15 higher at 35.64¢ per pound. In the outside markets, the Brent crude oil market is $0.17 per barrel higher, the U.S. dollar is lower, and the Dow Jones Industrials are 33 points lower at 19,856 points.
Corn and beans were lower in overnight trading as traders finally turned their attention to the dismal sales last week. Corn lost about 2 cents and beans were down almost 7 cents overnight. Brazilian crop agency Conab said grain output will rise 15% and soybean production will increase 8.7% year-over-year. Its wheat harvest jumped almost 22% and barley output gained 43%. Check out all of the gory details in this morning's 3 Big Things.
Here's what happened overnight:
Brent Crude Oil = 0.2% higher.
West Texas Intermediate Crude Oil = 0.2% higher.
Dollar = down 0.1%.
Wall Street = U.S. stock futures mixed, little changed in overnight trading.
World Markets = Global stocks higher as dollar declines.