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Veteran Advisor

Floor Talk January 8

At the close:

The March corn futures contract settled 9 cents lower at $4.17. The March soybean futures contract ended 6 3/4 cents lower at $12.69. March wheat futures settled 13 3/4 cents lower at $5.88 per bushel. The March soymeal futures contract finished $3.30 per short ton lower at $412.50. The March soyoil futures finished $0.25 lower at $37.68.
In the outside markets, the NYMEX crude oil is $1.22 per barrel lower, the dollar is higher and the Dow Jones Industrials are 76 points lower.

 

One analyst sizes up the market in this way: "Indeed, the market is prepping for Friday’s report.  The expectation is for greater Dec 1 stocks and greater yields.  This has kept pressure on the markets in tandem with the good growing conditions in South America.  This is likely to keep pressure until the report is released.  In the background, Index funds are rebalancing their portfolios and will be active buyers of corn in the coming days.  This very well could be initiated in OTC transactions, so option values will help to drive pricing of the underlying futures."

 

Mike

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At mid-session:

The March corn futures contract is trading 7 cents lower at $4.18. The March soybean futures contract is trading 5 cents lower at $12.71. March wheat futures are 9 1/2 cents lower at $5.93 per bushel. The March soymeal futures contract is trading $0.40 per short ton lower at $415.40. The March soyoil futures are trading $0.35 lower at $37.58.
In the outside markets, the NYMEX crude oil is $0.52 per barrel lower, the dollar is higher and the Dow Jones Industrials are 72 points lower.

 

One analyst says, "It's hard to say exactly why corn is trading toward the contract lows a few days before the report and heading into the index re-balance.  It could be increased farmer selling after the first of the year and before the report.  It could also be that specs over-subscribed to the index fund re-balance and liquidated longs after their risk thresholds were taken out.  I'm not really sure, we haven't heard anything these are just theories," he says.

 

 

Mike

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At the open:

The March corn futures contract is trading 1/4 of a cent lower at $4.26. The March soybean futures contract is trading 4 cents lower at $12.71. March wheat futures are 2 cents higher at $6.05 per bushel. The March soymeal futures contract is trading $0.40 per short ton lower at $415.40. The March soyoil futures are trading $0.29 lower at $37.64.
In the outside markets, the NYMEX crude oil is $0.27 per barrel higher, the dollar is higher and the Dow Jones Industrials are 50 points lower.

 

Mike

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At 8am:

--USDA announces Wednesday that China bought 115,000 tons of U.S. soybeans for 2013-14 delivery.

 

 

Mike

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At 6:25am:

Early calls: Corn is seen 1-2 cents higher, soybeans 4-6 cents lower, and wheat 2-4 cents higher.

Trackers:
Overnight grain, soybean markets=Trading mostly higher.
Brent Crude Oil=$0.04 per barrel higher.
Dollar=Higher.

Wall Street=Flat, ahead of private jobs report.

World Markets=Asia/Pacific stocks were higher, Europe stocks lower.

 


More in a minute,

 

Mike

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1 Reply
Senior Contributor

Re: Floor Talk January 8

I find the fact that the market has reacted to something. Telling, has the report been leaked. I do not know, but something is making this market move lower. 

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