Floor Talk, January 13, 2020
At the close:
At the close, the March corn futures finished 3 1/4¢ higher at $3.89. May corn futures settled 3 1/2¢ higher at $3.96 1/2.
March soybean futures closed 3 3/4¢ lower at $9.42 1/4. May soybean futures ended 3 1/2¢ lower at $9.55 1/2.
March wheat futures ended 2 1/2¢ lower at $5.62 1/4.
March soymeal futures settled $0.30 per short ton higher at $303.80. March soy oil futures closed $0.40 cents lower at 33.95¢ per pound.
In the outside markets, the NYMEX crude oil market is $0.92 per barrel lower, the U.S. dollar is lower, and the Dow Jones Industrials are 56 points higher.
At midsession, the March corn futures are 3 1/4¢ higher at $3.89. May corn futures are 2 1/2¢ higher at $3.95 1/2.
March soybean futures are 5 3/4¢ lower at $9.40 1/4. May soybean futures are 6¢ lower at $9.53 1/2.
March wheat futures are 3 1/2¢ lower at $5.61.
March soymeal futures are $1.00 per short ton lower at $302.50. March soy oil futures are $0.29 cents lower at 34.06¢ per pound.
In the outside markets, the NYMEX crude oil market is $0.76 per barrel lower, the U.S. dollar is lower, and the Dow Jones Industrials are 69 points higher.
Matt Tranel, Cash Advisor for Commodity Risk Management Group, says that now that January's WASDE & quarterly stocks reports are out and largely released neutral information for price direction, the market now turns its attention to January 15th.
“The Phase 1 deal is scheduled to be signed on Wednesday. It appears that the market is hesitant to push soybean prices in a positive direction, because whenever we have heard talk of "progress" on trade with China in the past, it has turned out poorly and traders that were long the market were burned badly. Despite this hesitancy, we have never been within 48 hours of getting this deal done and the trade is cautiously hopeful too,” Tranel says.
Tranel added, “Corn is just trading the range at this point. The reports failed to provide a spark to the higher end, but was friendly enough to trade back up from our Friday lows. The range has essentially been $3.72 - $3.92 based upon the March board and 20-25 cent winter ranges have essentially defined the corn market the last few years,” Tranel says.
In early trading, the March corn futures are 1¢ higher at $3.86 3/4. May corn futures are 3/4¢ higher at $3.93 1/2.
March soybean futures are 5 3/4¢ lower at $9.40 1/4. May soybean futures are 5 3/4¢ lower at $9.53 1/2.
March wheat futures are 1 1/2¢ lower at $5.63.
March soymeal futures are $0.40 per short ton lower at $303.10. March soy oil futures are $0.30 cents lower at 34.05¢ per pound.
In the outside markets, the NYMEX crude oil market is $0.30 per barrel lower, the U.S. dollar is lower, and the Dow Jones Industrials are 27 points higher.
On Monday, private exporters reported to the USDA the following activity:
--Optional origin sales of 137,000 metric tons of corn for delivery to South Korea during the 2019/2020 marketing year. An optional origin contract provides that the origin of the commodity may be the U.S. or one or more other exporting countries.
The marketing year for corn began Sept. 1.
Al Kluis, Kluis Advisors, says that investors will be watching South America’s crop progress and demand for U.S. products.
“Will we see action at the January-to-March soybean continuation gap? If March pulls back 9 cents, then that is a logical area of support on the continuation chart. Also watch for a close above $9.60 when the March contract becomes the nearby contract. In that case, we could see a major chart break-out to the top side, ” Kluis stated in a daily note to customers.
Kluis added, “The positive close in the grain markets (after what we viewed as negative reports) is a positive signal for the grain markets. Now all attention is on crop and weather development in South America.”
Re: Floor Talk, January 13, 2020
Emojis? C'mon man, you're better than that. Use that deep and illustrative language that you worked so hard to learn. It's a glorious thing.