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Veteran Advisor

Floor Talk, January 28, 2020

At the close:

At the close, the March corn futures finished 6¢ higher at $3.86 1/2. May corn futures settled 5 1/4¢ higher at $3.92.

March soybean futures closed 2 1/2¢ lower at $8.95. May soybean futures ended 2¢ lower at $9.09.

March wheat futures ended 2 1/4¢ lower at $5.69.

March soymeal futures closed $0.20 per short ton lower at $297.60.

March soy oil futures settled $0.06 cents lower at 31.46¢ per pound.



In the outside markets, the NYMEX crude oil market is $0.45 per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 257 points higher.

Mike

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At 12:50pm:

At midday, the March corn futures are 5 1/4¢ higher at $3.85. May corn futures are 4 1/4¢ higher at $3.91 1/2.

March soybean futures are 3 1/2¢ lower at $8.93 1/2. May soybean futures are 3 1/4¢ lower at $9.07.

March wheat futures are 2 1/4¢ lower at $5.70.


March soymeal futures are $0.80 per short ton lower at $297.80.

March soy oil futures are $0.09 cents lower at 31.43¢ per pound.



In the outside markets, the NYMEX crude oil market is $0.31 per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 217 points higher.

Jack Scoville, PRICE Futures Group, says that soybeans are still feeling the corona virus and demand for soybeans could be hit if the outbreak gets much more serious.

“However, corn really went down in sympathy and not on its own yesterday so is able to recover today. China never has been a big buyer of US corn so the direct effect of the virus is small. There could be some lost ethanol demand due to the lower crude oil and products prices but not much on sales to China. Plus, even though South America might have lot of corn later this year it does not really have it now, unlike the beans that are getting harvested as we speak. Ukraine does, but, is a minor player in corn, overall. So, corn is able to bounce while beans remain under pressure a little bit more,” Scoville says.

Mike

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At 9am:

 

In early trading, the March corn futures are 1/2¢ higher at $3.81. May corn futures are unchanged at $3.86 1/2.

March soybean futures are 4 3/4¢ lower at $8.92 1/2. May soybean futures are 4 3/4¢ lower at $9.06.

March wheat futures are 4¢ lower at $5.68.

March soymeal futures are unchanged per short ton lower at $297.80.

March soy oil futures are $0.60 cents lower at 30.92¢ per pound.



In the outside markets, the NYMEX crude oil market is $0.10 per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 87 points higher.

On Tuesday, private exporters reported to the USDA export sales of 124,355 metric tons of corn for delivery to Mexico during the 2019/2020 marketing year.

The marketing year for corn began Sept. 1.

Al Kluis, Kluis Advisors, says that investors still want to see what impact the contravirus will have around the world.

“The primary reason for yesterday’s losses are unknowns. But, reasons given were ones like coronavirus. How will it impact global economies? It is too early to say. Grain bulls are still waiting to see large export sales to China, ” Kluis stated in a daily note to customers.

Kluis added, “The announcement on Monday that China purchased wheat from Australia, Canada and France is not what the grain bulls wanted to see after the Phase One signing. Wheat prices look susceptible to a quick slide lower if we see another headline like this.”

 

Mike

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8 Replies
Veteran Advisor

Re: What do you think, can beans hold at 880?

What do you think, can beans hold at 880?  A year ago in April when the trade war blew up beans went to 840-850. Now, not only do the Chinese have their hands full with a killer virus but this gives them the perfect reason not to buy, "Force Majeure".

 

We're coming up on Feb. fast and will need to set the Spring Ins. price,  it couldn't come at a worse time. 

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Frequent Contributor

Re: Floor Talk, January 28, 2020

I subbed my toe this morning and i totally blame farmer's for it so gonna need you idiots to knock the prices down some more.

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Veteran Advisor

Re: Floor Talk, January 28, 2020

Farmers are said to be responsible for this too....

https://www.youtube.com/watch?v=vgI3W0pA0ps

#RIPeanut

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Honored Advisor

Re: What do you think, can beans hold at 880?

Sure they can  ------   whenever farmers stop spending next years crop.  Stop using that fake crop insurance.

When..... farmers stop planting to get rich....... Stop planting a looser so they can brag about corn yields every other year...

When we stop selling beans that do not exist for another 10 months.

When farmers live on a cash basis.................... I hope I never see another bean planted until I can clear 25% profit.  Which isn't enough considering the risk analysis and the value of the assets needed to raise the crop.  It is like playing penny poker with a $10,000 ante.

When usda posts a loan rate that covers 70% of risk, Otherwise you know going in the door that FSA does not want you to plant soybeans.  They have no interest in your production

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So where are we?  No crop cash flows for 2020 at this point.... except maybe cotton south of the HWY 50.....  

And no one is asking us to please keep planting...... so what are the bankers going to do?????  Push for another year or cut and run???

 

Honored Advisor

Re: What do you think, can beans hold at 880?

From a non farmer perspective.... spec fun play with the computer perspective.

I am out of beans      wait and learn               --- They are cheaper than corn to produce so the supply will not go away.   

I am delivering beans priced a month ago to Cargill 200 miles away...... no one else within range wants them... local elevators will take them if you pay them $1.70 per bushel for their inconvenience.   

But futures wise I am out of them ........ they have no clear direction and are reactionary to fake news, or any other information (proven or unproven).  No one can predict the reaction..... 

Corn...Buy           . I am back in owning a little corn in March and September.  Call this reowning corn I sold in November.

Feeder cattle ....BUY              I had some sold and am looking to buy them back in this down turn...... I'll buy March feeders I had sold in October and buy another position for summer.

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Advisor

Re: What do you think, can beans hold at 880?

As the markets all rebound from yesterday’s losses grains continue to trade lower.  Al’s excuse today is they just don’t know how it’s (virus) is going to effect economies.  Well it effected ours for exactly one day then back to profits for the Dow.  These guys at the Board our so ridiculous with these grains, sure would be nice if they would act and react like the rest of stock traders.  Greed and selfishness has taken over fellas.  By the way how far off our prices since the trade deal of the century was signed?  Unbelievable traded for two years down on talk of such an outstanding awaited deal and still find a way to screw everyone else when it came.  Shame on you all!!

Honored Advisor

Re: What do you think, can beans hold at 880?

I left out natural gas ........... Im gonna own some on paper soon.  

One of those expenses we are so gouged on.  So many new con men involved in that industry....Mostly neighbors who join coops and dictate policy and rules to their neighbors.  Start acting like Congressmen- smarter than everyone else.

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Veteran Advisor

Re: What do you think, can beans hold at 880?

Maybe  we  all  need  an  ''  Success  Kid ''  vial  meme  Rep.  like  in  Iowa - ? 

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