Floor Talk, July 30, 2019
At the close:
At the close, the Sep. corn futures finished 5 3/4¢ lower at $4.11. Dec. corn futures settled 6¢ lower at $4.21.
Aug. soybean futures closed 7¢ lower at $8.78 3/4. November soybean futures ended 7 1/2¢ lower at $8.96 3/4.
Sep. wheat futures closed 6 1/4¢ lower at $4.97 1/2.
September soymeal futures settled $3.60 per short ton lower at $302.70. December soy oil futures closed $0.14 lower at 28.83¢ per pound.
In the outside markets, the NYMEX crude oil market is $1.44 higher, the U.S. dollar is lower, and the Dow Jones Industrials are 8 points lower.
Britt O'Connell, Cash Advisor for Commodity Risk Management Group, says that improved crop condition scores and pleasant weather has both corn and beans under continued pressure, again, today.
“Corn has continued to hold very key support today at that $4.20 price point. This is something the trade will continue to monitor. Should that not hold we will begin to see sell stops triggered and likely a further sell off in corn. While this seems premature given the Aug 12 report on the horizon, it would certainly add to the intrigue of that story line.
O’Connell adds, “This year is very unique in that there are so many sub plots and story lines. you can basically pick your narrative and run with it. Also likely why this market seems to lack real direction. Interestingly enough, very quietly in the background the funds have established a long position of nearly 200,000 contracts. This data was as of last week, and certainly there may have been some selling this week given price action. We typically do not see the funds adding length and the market moving lower. Points to some weak longs leaving the market as it does not feel like farmers are willing sellers,” O’Connell says.
At midsession, the Sep. corn futures are 6¢ lower at $4.11. Dec. corn futures are 6 1/4¢ lower at $4.20.
Aug. soybean futures are 8 1/2¢ lower at $8.77 1/4. November soybean futures are 8 1/4¢ lower at $8.96.
Sep. wheat futures are 6¢ lower at $4.97 1/2.
December soymeal futures are $3.50 per short ton lower at $308.00. December soy oil futures are $0.12 lower at 28.85¢ per pound.
In the outside markets, the NYMEX crude oil market is $0.33 higher, the U.S. dollar is lower, and the Dow Jones Industrials are 56 points lower.
In early trading, the Sep. corn futures are 4¢ lower at $4.13. Dec. corn futures are 4 3/4¢ lower at $4.22.
Aug. soybean futures are 6¢ lower at $8.79 3/4. November soybean futures are 6 1/2¢ lower at $8.97 3/4.
Sep. wheat futures are 5 3/4¢ lower at $4.97 3/4. December soymeal futures are $2.80 per short ton lower at $308.70. December soy oil futures are $0.01 lower at 28.96¢ per pound. In the outside markets, the NYMEX crude oil market is $0.24 higher, the U.S. dollar is lower, and the Dow Jones Industrials are 100 points lower.
Al Kluis, Kluis Advisors, says that all eyes are on today’s USDA Crop Progress Report.
“The last five weeks, Monday has usually been the high for the week. This week it may turn out to be the low. On Monday, corn futures opened lower and then closed 2 cents higher. Soybeans also reversed and closed up 3 cents. Wheat futures closed 4 to 8 cents higher,” Kluis told customers in a daily note.
Kluis added, “The USDA Crop Progress report Monday showed corn conditions up (by 1%) to 58% good to excellent and soybean ratings unchanged at just 54% good to excellent. These are some of the lowest late July crop ratings I can find.”
Re: Floor Talk, July 30, 2019
Really?? Why the emphasis on the NASS report vs. the actual field reports? They act as if 58% of the NASS acres is what is actually planted and in the silk stage. Give me a break! 91.7 Million Acres - Actually Planted?? I don't think so....