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marketeye
Veteran Advisor

Floor Talk January 14, 2021

At the close:

At the close, the March corn futures finished 9 3/4¢ higher at $5.34 1/2. May corn futures closed 10¢ higher at $5.37 1/2.

March soybean futures settled 24 1/4¢ higher at $14.30 1/4. May soybean futures ended 24¢ higher at $14.27 3/4.

March wheat futures closed 9 1/2¢ higher at $6.70.

March soymeal futures finished $7.80 short term higher at $464.90.


March soy oil futures closed 0.93 higher at 43.11¢ per pound.



In the outside markets, the NYMEX crude oil market is $0.67 per barrel higher (+1.27%) at $53.58. The U.S. dollar is higher, and the Dow Jones Industrials are 40 points higher (+0.13%) at 31,100 points.

 

Mike

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At midsession:

At midsession, the March corn futures are 7 1/4¢ higher at $5.31 1/2. May corn futures are 6 3/4¢ higher at $5.34 1/2.

March soybean futures are 18 1/4¢ higher at $14.24 1/4. May soybean futures are 18 1/4¢ higher at $14.22.

March wheat futures are 12 1/4¢ higher at $6.72 3/4.


March soymeal futures are $7.40 short term higher at $464.50.


March soy oil futures are 0.66 higher at 42.84¢ per pound.



In the outside markets, the NYMEX crude oil market is $0.13 per barrel lower (-0.25%) at $52.78. The U.S. dollar is higher, and the Dow Jones Industrials are 119 points higher (+0.38%) at 31,179 points.

Mike

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At 8:45am:

In early trading, the March corn futures are 1¢ higher at $5.25 1/2. May corn futures are 1¢ higher at $5.28.

March soybean futures are 1¢ lower at $14.05 1/4. May soybean futures are 1/4¢ lower at $14.03 1/4.

March wheat futures are 3 1/2¢ lower at $6.57.

March soymeal futures are $1.50 short term higher at $458.60.

March soy oil futures are 0.45 lower at 41.73¢ per pound.

In the outside markets, the NYMEX crude oil market is $0.24 per barrel lower (-0.45%) at $52.67. The U.S. dollar is higher, and the Dow Jones Industrials are 96 points higher (+0.31%) at 31,055 points.

Al Kluis, Kluis Advisors, says that the market is building in rationing.

“The price rationing that needs to be done in the corn market is starting. The Energy Information Agency report yesterday showed corn used for ethanol down 14% from last year. If this trend continues, then it will reduce corn used for ethanol by over 500 million bushels. Also of concern yesterday is that even with the drop in ethanol production, ethanol stocks increased by 408,000 gallons,” Kluis stated in a daily note to customers.

Kluis added, "I see no slow-down in export demand for corn and soybeans at this time."

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5 Replies
roarintiger1
Honored Advisor

Re: Floor Talk January 14, 2021

Ok... so rationing on one hand and continued record exports on the other.   Nothin’ like Sittin’ on the fence. 
It appears that prices need to go much higher to slow down the exports. But...how much higher do prices need to go? That’s the million dollar question. However, it makes  more sense to keep the grain in our own country rather than needing to import supplies later. 

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sw363535
Honored Advisor

Re: Floor Talk January 14, 2021

Without a doubt and ignoring the obvious ------- Government by way of covid stopped ethanol for a month  last summer....  Other than that corn use for ethanol was unchanged.....   When the geniuses discover "cloud" energy or "Jetson" propulsion.\(whatever will be the next switchgrass)  ethanol may get wrestled to the ground and strangled to death.........as it looses favor.  Remember 70% of ethanol production is a edible feed, corn will and does replace it.

If for some reason we continue to use the covid mask, or some other "fear factor" like going after fossil fuels with wacko science doom and gloom, and corn for ethanol goes down -- feed use of corn will more than make up the difference.

Klaus needs "the rest of the story" most of the time ----- it was not rationing    ------ Nothing rational about any of it

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roarintiger1
Honored Advisor

Re: Floor Talk January 14, 2021

So.....for the markets quick climb upward, the market gurus seem to be very, very quiet. I think they are like most farmers. They are simply in shock as to how fast and how far this thing has gone higher.

Farmers however, knew that the yields and supply that the USDA had been given as the gospel truth was nothing more than smoke and mirrors. The end users and importing countries don’t know how good they had it. 

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rickgthf
Senior Advisor

Re: They're calling for some rain in Brazil this week,

They're calling for some rain for Brazil this week, dry next week.  We'll see how much they get.  As of yet, new crop prices haven't moved that much considering how short they'll be by next Sept if this keeps up.

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k-289
Senior Advisor

Re: Floor Talk January 14, 2021

Interesting  comparison  of  commodity  movement  -  CME  LUMBER  -   accelerated  price moves  ,  while  contract volume  declines  -  -  - 

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