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Tony_Dreibus
Veteran Contributor

Floor Talk January 6

At the close:

At the close, the March corn futures settled 3 1/4¢ lower at $3.58, and new crop December 2017 futures finished 3¢ lower at $3.85 1/2 per bushel. March soybean futures settled 17 1/2¢ lower at $9.94 3/4, while November 2017 soybean futures closed 13 3/4¢ lower at $9.82 1/2. March wheat futures closed 3¢ lower at $4.23 1/4. March soy meal futures ended $6.90 short ton lower at $311.30. March soy oil futures settled $0.24 lower at 34.98¢ per pound.  In the outside markets, the Brent crude oil market is $0.08 per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 78 points higher at 19,977 points.

 

Mike

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At mid-session:

At mid-session, the March corn futures are 2 3/4¢ lower at $3.58, and new crop December 2017 futures are 2 1/2¢ lower at $3.86 per bushel. March soybean futures are 15¢ lower at $9.97, while November 2017 soybean futures are 11 1/4¢ lower at $9.85. March wheat futures are 1/2¢ lower at $4.25. March soy meal futures are $6.50 short ton lower at $311.70. March soy oil futures are $0.15 lower at 35.07¢ per pound.  In the outside markets, the Brent crude oil market is $0.29 per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 72 points higher at 19,971 points.

 

Jack Scoville, The PRICE Futures Group’s Senior Market Analyst, says that the markets are lower on a small rebound in the US Dollar combined with some very weak export sales today. 

“Really not much else to talk about.  Weather forecasts now call for rain in central and northern Brazil by the end of next week or so, but these rains forecasts never seem to show up.  In the meantime, crops are being stressed.” Too much rain still in parts of Argentina and this does not seem to be going away.  Too dry southern Brazil, he says. 

“The market is pretty complacent about huge crops down there and might be a bit too complacent, but given the weekly sales today that does not matter.  I think the sales are just a blip, sales will improve again and soon, but the world raced to book before the holidays and in response to U.S. election. So, it might take a couple of weeks,” Scoville says.

 

 

Mike

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At 9:15am:

If you missed the USDA's Weekly Export Sales Report Friday, here it is:

 

Corn= 429,200 mt. vs. the trade's expectations of 550,000-1,100,000 metric tons.

 

Wheat= 183,700 mt. vs. the trade's expectations of 250,000-525,000 mt.

 

Soybeans= 87,700 mt.  vs. the trade's expectations of 500,000-1,500,000 mt. Net sales of 87,500 MT for 2016/2017--a marketing-year low--were down 91 percent from the previous week and 94 percent from the prior 4-week average. Increases were reported for China (641,500 MT, including 626,000 MT switched from unknown destinations and decreases of 23,600 MT), Indonesia (80,000 MT, including 50,000 MT switched from unknown destinations and decreases of 100 MT), Vietnam (75,300 MT, including 65,000 MT switched from unknown destinations), Spain (66,000 MT, including 63,000 MT switched from unknown destinations), and Bangladesh (57,400 MT, including 55,000 MT switched from unknown destinations). Reductions were for unknown destinations (898,300 MT).

For 2017/2018, net sales of 200 MT were reported for Japan. Exports of 1,590,100 MT were down 16 percent from the previous week and 14 percent from the prior 4-week average. The primary destinations were China (1,194,900 MT), Indonesia (81,200 MT), Vietnam (71,900 MT), Spain (66,000 MT), and Bangladesh (57,400 MT). 

 

 

Soymeal= 83,300 mt. vs. the trade's expectations of 100,000-350,000 mt.

 

What say you about China canceling soybean orders?

 

Mike

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At 9:05am:

In early trading, the March corn futures are 2 3/4¢ lower at $3.58, and new crop December 2017 futures are 2 1/2¢ lower at $3.86 per bushel. March soybean futures are 11¢ lower at $10.01, while November 2017 soybean futures are 8¢ lower at $9.88. March wheat futures are 1 1/2¢ lower at $4.24. March soy meal futures are $4.60 short ton lower at $313.60. March soy oil futures are $0.12 lower at 35.10¢ per pound.  In the outside markets, the Brent crude oil market is $0.02 per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 32 points lower at 19,867 points.

 

 

Mike

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Soybeans were lower in overnight trading thanks to continued rainfall in South America -- so that's not really new. It seems traders are kind of stuck in a bearish lull right now and need something to give them a kick. One might think ethanol production at a record, yet stockpiles that are stagnant, an indication that we're running through a lot of the biofuel, would be enough of a bullish indicator to give the corn market a bump, but futures were unchanged overnight. In other news, the southern Plains is going to get blasted by a strong winter storm with accumulations of up to 7 inches of snow, the NWS said. The storm will extend along the Gulf Coast all the way to the Atlantic Ocean. 

 

Here's what happened overnight:

 

Brent Crude Oil = 0.6% higher.

West Texas Intermediate Crude Oil = 0.6% higher.

Dollar = up 0.2%.

Wall Street = U.S. stock futures slightly lower in overnight trading.
World Markets = Global stocks mixed in light trading.

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2 Replies
ECIN
Senior Advisor

Re: Floor Talk January 6

The storm will extend along the Gulf Coast all the way to the Atlantic Ocean. 
 

 

I seen were Atlanta had 1 - yes - 1 snowflake fall and 8 cars slide off the road !  lol

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clayton58
Veteran Advisor

Re: Floor Talk January 6

2-3" snow here.  Maybe not much moisture, but it will help protect the wheat from our 5 degree with subzero windchills. ( SW  of dodge city.)