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Veteran Advisor

Floor Talk, January 24, 2020

At the close:

At the close, the March corn futures finished 6 1/2¢ lower at $3.87. May corn futures finished 5 1/4¢ lower at $3.92 3/4.

March soybean futures closed at 7 1/4¢ lower at $9.02 1/4. May soybean futures closed 7 1/2¢ lower at $9.15 1/2.

May soymeal futures settled $0.60 per short ton lower at $298.30. May soy oil futures closed $0.46 cents lower at 32.02¢ per pound.

March wheat futures finished 7¢ lower at $5.73 3/4.

In the outside markets, the NYMEX crude oil market is $1.44 per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 168 points lower.

Mike

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At midsession:

At midsession, the March corn futures are 3 3/4¢ lower at $3.90. May corn futures are 3 1/4¢ lower at $3.95.

March soybean futures are at 6 1/4¢ lower at $9.03 1/4. May soybean futures are 6¢ lower at $9.17 1/2.

May soymeal futures settled $0.50 per short ton higher at $298.40. May soy oil futures closed $0.34 cents lower at 32.14¢ per pound.

March wheat futures are 9 1/2¢ lower at $5.71 3/4.

In the outside markets, the NYMEX crude oil market is $1.45 per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 101 points lower.

Jason Roose, U.S. Commodities, says that investors await any real reason to build in premium into these markets.

“The grains are on defense today, after a range trade week in corn. Weather continues to be non threatening in South America, with harvest in its early stages. China still seems to be absent, after the phase one trade signing, from any large purchases of grain which is limiting any price premium to be added to the market,” Roose says.

Mike

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At 9am:

In early trading, the March corn futures are 4¢ lower at $3.89 1/2. May corn futures are 3 1/2¢ lower at $3.95.

March soybean futures are at 6 3/4¢ lower at $9.02 1/4. May soybean futures are 6 1/2¢ lower at $9.16 1/2.

March wheat futures are 6 1/2¢ lower at $5.74.

In the outside markets, the NYMEX crude oil market is $1.07 per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 106 points higher.

Al Kluis, Kluis Advisors, says that the corn market could have a story soon.
“Corn continues to find support as rumors are floating around that we could see some increased export business from China causing the funds to buy back some of their short position. Soybeans fell under some resistance as we find out more about this coronavirus. All in all the corn and bean markets feel a bit heavy in here and with crude oil coming under pressure and uncertainty about the coronavirus we could see the grains take some risk off,” Kluis told customers in daily note.

Kluis added, “I think yesterday’s build up in ethanol stocks for the second week in a row along with poor ethanol margins will cause some ethanol plants to start to idle back and that could cause corn basis levels to soften.”  

On Friday, the USDA released a Weekly Export Sales Report showing strong business.

Corn= 1.0 million metric tons vs. the trade’s expectations of between 500,000-1.2 million metric tons.

Soybeans= 910,700 mt. vs. the trade’s expectations of between 600,000-1.1mmt.

Wheat= 696,000 mt. vs. the trade’s expectations of between 200,000-800,000 metric tons.

Soybean meal= 641,900 mt. vs. the trade’s expectations of between 200,000-450,000 metric tons.                   
Private exporters reported to the USDA export sales of 142,428 metric tons of corn for delivery to unknown destinations during the 2019/2020 marketing year.

The marketing year for corn began Sept. 1.

 

Mike

 

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3 Replies
Frequent Contributor

Re: Floor Talk, January 24, 2020

A virus in china let's blame the farmers and knock their prices down great idea.

Advisor

Re: Floor Talk, January 24, 2020

I’m also very curious why a virus would have any effect on US grain prices?  Is there speculation that our cheap gmo grain is a contributing factor?  Sounding like a broken record over here, but sounds like reaching for yet another excuse.  Sure am glad the US agreed to multiple trade deals, just to trade lower 8 out of the last 9 days.?.  Your basically telling everyone no deal would have been more beneficial.

Veteran Advisor

Re: Floor Talk, January 24, 2020

Stupid as it appears, grain prices are trending down due to the Senate impeachment stuff, raises uncertainty, especially as (so far) we're hearing only one side of the argument.

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