Floor Talk January 20
At the close:
The March corn futures finished 3 1/4 cents higher at $3.90 per bushel.
March soybean futures are trading 9 3/4 cents lower at $9.82.
March wheat futures closed 4 1/4 cents higher to $5.37. The March soybean meal futures finished $0.30 per short ton higher at $326.50. March soyoil futures ended $0.55 lower at $32.84.
In the outside markets, the NYMEX crude oil market is $2.21 lower per barrel, the U.S. Dollar is higher and the Dow Jones Industrials are 18 points lower.
The March corn futures are trading 1/2 of a cent lower at $3.86 per bushel.
March soybean futures are trading 16 cents lower at $9.75.
March wheat futures are trading 3 1/4 cents lower to $5.29. The March soybean meal futures are trading $3.60 per short ton lower at $322.60. March soyoil futures are trading $0.52 lower at $32.87.
In the outside markets, the crude oil market is $1.78 lower per barrel, the U.S. Dollar is higher and the Dow Jones Industrials are 121 points lower.
Jack Scoville, PRICE Futures Group vice-president, says some forecasting for better precipitation in Brazil, this week, is pushing soybean prices down.
“Also, another cancellation from China is negative. So, they are definitely moving the demand on south,” Scoville says.
Corn is hanging better, with a little U.S. acreage war going on, he says. “Plus, I think export demand for corn is holding better. Wheat still has down side, but has gone a long way already. All of the selling is in the beans today and it is all South America related. The others don’t have the South America weather to lean on so they are doing better.”
USDA Reports Fresh Export Cancellations Tuesday:
Private exporters reported to the U.S. Department of Agriculture cancellations of export sales totaling 174,000 metric tons of soybeans to China during the 2014/2015 marketing year.
The marketing year for soybeans began Sept. 1.
At the open:
The March corn futures are trading 4 cents lower at $3.83 per bushel.
March soybean futures are trading 10 cents lower at $9.81.
March wheat futures are trading 2 cents lower to $5.30. The March soybean meal futures are trading $2.10 per short ton lower at $324.00. March soyoil futures are trading $0.22 lower at $33.17.
In the outside markets, the crude oil market is $1.42 lower per barrel, the U.S. Dollar is higher and the Dow Jones Industrials are 50 points higher.
Early calls: Corn 2-4 cents lower, soybeans 7-9 cents lower, and wheat 3-4 cents lower.
Overnight grain, soybean markets = Trading lower.
Crude Oil = $1.05 lower per barrel.
Dollar = Higher
Wall Street = Higher on major earnings reports and ECB action eyed.
World Markets = Europe stocks were higher, Asia/Pacific stocks were higher.
More in a minute,
Re: Floor Talk January 20
The political turmoil that South America is living may affect sooner or later the commodities markets, I guess. Some may have watched news about Argentina yesterday involving the death of a prosecutor - and that relates to Iranian oil. In Brazil, there is an ongoing corruption investigation - the biggest in our history - that has state-run oil company Petrobras in its center. The embezzlements account over US$ 10 billion and puts the largest construction businesses of the country involved with overpriced contracts with Petrobras. Many of the giant oil company's directors entered a plea deal that can put high-profile politicians to jail by some time. There are rumours that former president Lula may be included in this investigation and that he could to jail, but in previous scandals he always left his fingerprints outside of it...
Another scandal that may interest the markets and the food industry around the world is the one involving JBS, the largest processing food company in the world. News reports says that the multinational is currently under investigation, but did not mention details. JBS was supported in recent years by Brazil's BNDES to buy other food companies around the world. Last week, Marcus Vinícius Pratini de Moraes rennounced the board of director of the company, but this was not divulged in JBS's website. He was considered the most prestigious name of the board.
So there are tough times coming. Some of these big construction companies won't survive. Some politicians can lose their careers. But it is a hurtful and necessary process to clean up the country.