Floor Talk January 29
BIG NEWS: I just received my first weather outlook for this spring. A weather expert told me that the models show a wet spring developing. If this happens, I wonder if this will push up soybean acres even more than what's being talked about?
At the close:
The March corn futures contract settled 4 1/2 cents lower at $4.27. The March soybean futures contract ended 16 cents lower at $12.69. March wheat futures finished 14 cents lower at $5.51 per bushel. The March soymeal futures contract ended $5.30 per short ton lower at $423.30. The March soyoil futures finished $0.30 lower at $37.10.
In the outside markets, the NYMEX crude oil is $0.17 per barrel lower, the dollar is lower and the Dow Jones Industrials are 186 points lower.
The Fed cut its stimulus program Wednesday. The stock market has fallen 150 points. Wheat and soybeans have fallen double-digits. One floor trader explains today's market action like this:
"Sort of inevitable for beans…good crops in SA, the first boat of new crop beans sailed from Paranagua port.. there was talk of bean exports to China canceled last week. And, we expect to see that reflected on tommorrow's sales… (if not, then we firm up..). Trend-following funds chase wheat on new post report lows, following the higher stocks number posted on Jan 10th..
"I think farm bill may have something to do as well. The language I saw had low farm support prices. So, expect more switching out of corn to bean acres.If you see anything on language regarding risk payments let me know.. .the Senate version looked like 3.30 farm support prices for corn… (below current cost of production)."
Dan Looker, SF Business Editor says that it's actually $3.70 farm support price for corn. That's the Price Loss Coverage program. It's based on 85% of your base acres, which farmers will be able to update.
The March corn futures contract is trading 3/4 of a cent lower at $4.31. The March soybean futures contract is trading 16 1/4 cents lower at $12.69. March wheat futures are 9 cents lower at $5.56 per bushel. The March soymeal futures contract is trading $6.30 per short ton lower at $422.30. The March soyoil futures are trading $0.07 lower at $37.33.
In the outside markets, the NYMEX crude oil is $0.37 per barrel lower, the dollar is lower and the Dow Jones Industrials are 154 points lower.
In early trading, the March corn futures contract is trading 1 3/4 cents lower at $4.30. The March soybean futures contract is trading 6 1/4 cents lower at $12.79. March wheat futures are 4 cents lower at $5.62 per bushel. The March soymeal futures contract is trading $2.90 per short ton lower at $425.70. The March soyoil futures are trading $0.06 higher at $37.46.
In the outside markets, the NYMEX crude oil is $0.30 per barrel higher, the dollar is lower and the Dow Jones Industrials are 124 points lower.
Early calls: Corn is seen 1-2 cents lower, soybeans 3-5 cents lower, and wheat 2-4 cents lower.
Overnight grain, soybean markets=Trading lower.
Brent Crude Oil=$0.30 per barrel higher.
Wall Street=Seen mixed, ahead of the Fed Reserve's move.
World Markets=Asia/Pacific stocks were higher, Europe stocks lower.
More in a minute,