Floor Talk, January 15, 2020
At the close:
At the close, the March corn futures finished 1 1/2¢ lower at $3.87 1/2. May corn futures closed 2¢ lower at $3.94.
March soybean futures settled at 13 1/2¢ lower at $9.28 1/4. May soybean futures closed 13 3/4¢ lower at $9.42 1/2.
March wheat futures ended 4 3/4¢ higher at $5.73 1/4.
March soymeal futures settled $1.90 per short ton higher at $300.10. March soy oil futures closed $0.77 cents lower at 33.30¢ per pound.
In the outside markets, the NYMEX crude oil market is $0.20 per barrel lower, the U.S. dollar is lower, and the Dow Jones Industrials are 90 points higher.
At midsession, the March corn futures are 1/2¢ higher at $3.89. May corn futures are unchanged at $3.96.
March soybean futures are at 3¢ lower at $9.39 1/4. May soybean futures 2 3/4¢ lower at $9.52 1/2.
March wheat futures are 8 1/4¢ higher at $5.77.
March soymeal futures are $1.00 per short ton higher at $303.00. March soy oil futures are $0.73 cents lower at 33.34¢ per pound.
In the outside markets, the NYMEX crude oil market is $0.33 per barrel lower, the U.S. dollar is lower, and the Dow Jones Industrials are 162 points higher.
Britt O'Connell, Cash Advisor for Commodity Risk Management Group, says that the markets are now quietly trading sideways in corn and soybeans.
“March corn continues to find any traction moving higher than $3.90 and March beans with the $9.40 zone. I believe that the signing of stage 1 of the U.S., China trade agreement was fully priced into the market, soybeans made a 60 cent run shortly after the original announcement was made. As the details of stage 1 become more known, we may see more of a reaction from the market. New crop beans are trading within 20 cents of it's 1 year highs. With SA preparing to bring forward what is expected to be a record crop, pressure on the U.S. soybean contract seems reasonable,” O’Connell says.
O’Connell added, “Corn has rallied nearly 20 cents off it's most recent lows and seems to have no reason to move outside of the range it has found comfortable with for some months now.”
In early trading, the March corn futures are 1 1/4¢ higher at $3.90 1/2. May corn futures are 1¢ higher at $3.97.
March soybean futures are at 1/2¢ lower at $9.41 3/4. May soybean futures 3/4¢ lower at $9.54 1/2.
March wheat futures are 2 1/4¢ higher at $5.70 3/4.
March soymeal futures are $1.20 per short ton higher at $303.20. March soy oil futures are $0.48 cents lower at 33.59¢ per pound.
In the outside markets, the NYMEX crude oil market is $0.21 per barrel lower, the U.S. dollar is lower, and the Dow Jones Industrials are 96 points higher.
On Wednesday, private exporters reported to the USDA export sales of 126,000 metric tons of soybeans for delivery to China during the 2019/2020 marketing year.
The marketing year for soybeans began Sept. 1.
Al Kluis, Kluis Advisors, says that the ‘bulls’ in the market are looking for fresh news to trade.
“Grain prices have moved into a quiet trading range since the dull USDA report last week. The report did not give traders any reason to get excited. Now, everyone is waiting for the next headline that will have an impact on grains. Will the bulls be able to continue the rally on little or no fresh news, ” Kluis stated in a daily note to customers.
Kluis added, “The South American crop is not likely to break records this year. However, it has the potential to be a big crop nonetheless. We will likely see hedge pressure from the South American farmer as a result of the trade deal.”
Re: Floor Talk, January 15, 2020
The traders want fresh news? How about the signing of the China trade deal?
It’s perfectly clear that the traders are only taking this market higher...... by kicking and screaming all the way.
Re: Floor Talk, January 15, 2020
Soybeans were in the 10.60$ range when this trade war started and we farmers were assured this was a better deal then we already had.? You traders have a long way to go not to mention making up the losses over 2 year’s because of it. Don’t forget unless you were in the top 10% of farm income you didn’t get 𝚁𝚎𝚕𝚒𝚎𝚏 or benefits from Trump bailout sorry money.