Floor Talk July 7

[Tony_Dreibus]

At the close:

At the close, the July corn futures settled 1/4 of a cent lower at $3.35 1/2, Dec. futures finished 1/4¢ higher at $3.48 1/2 per bushel. August soybean futures ended 51¢ lower at $10.50 1/2, while Nov. soybean futures finished 48 1/2¢ lower at $10.24 3/4. Sept. wheat futures finished 3 cents lower at $4.25 1/2. August soymeal futures closed $16.20 short ton lower at $367.20. July soyoil futures closed $0.57 lower at $29.79.  In the outside markets, the Brent crude oil market is $2.07 per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 95 points lower.

Mike

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At 12:45pm:

U.S. Weekly Ethanol Production dropped, last week, acccording to EIA data. Ethanol production averaged 984,000 barrels per day (b/d)—or 41.33 million gallons daily. That is down 19,000 b/d from the week before. The four-week average for ethanol production stood at 990,000 b/d for an annualized rate of 15.18 billion gallons.

Stocks of ethanol stood at 21.6 million barrels. That is a 1.8% increase from last week and a nine-week high.

Mike

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At mid-session:

At mid-session, the July corn futures are 2 cents higher at $3.37, Dec. futures are 2 1/4¢ higher at $3.50 per bushel. August soybean futures are 23 3/4¢ lower at $10.77, while Nov. soybean futures are 25 1/4¢ lower at $10.48. Sept. wheat futures are 1/4 of a cent lower at $4.28. August soymeal futures are $8.30 short ton lower at $375.10. July soyoil futures are $0.14 lower at $30.22.  In the outside markets, the Brent crude oil market is $1.11 per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 33 points lower.

Jack Scoville, The PRICE Futures Group vice-president, says it’s another day of massive fund selling tied to the fact that they are now losing money on the longs they own.  
“Corn and Wheat not feeling the pressure like beans, but are starting to sink in sympathy. I know of no real fundamental for this, forecasts for the second half of July are warmer and drier, and we had some demand today.  The recent weather has been much improved, but still wild,” Scoville says.  
Scoville adds, “I had planned on firmer markets, so this is kind of a shock to me.  We will see how it goes.  The funds got a lot to sell, and seem to want to sell out in the worst way possible and the market is accommodating them in every sense of the term.”

Mike

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At 8:15am:

Private exporters reported to the U.S. Department of Agriculture the following activity:

-- Export sales of 120,000 metric tons of soybeans for delivery to China during the 2016/2017 marketing year; and

-- Export sales of 137,160 metric tons of corn for delivery to Mexico.  Of the total 15,240 metric tons is for delivery during the 2015/2016 marketing year, 91,440 metric tons is for delivery during the 2016/2017 marketing year, and 30,480 metric tons is for delivery during the 2017/2018 marketing year.

The marketing year for corn and soybeans began Sept. 1.

Mike

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At the open:

At the open, the July corn futures are 9 1/2 cents higher at $3.45, Dec. futures are 9 1/4¢ higher at $3.57 per bushel. August soybean futures are 3 1/4¢ lower at $10.98, while Nov. soybean futures are 3¢ lower at $10.70. Sept. wheat futures are 6 1/2¢ higher at $4.35. August soymeal futures are $1.40 short ton lower at $382.00. July soyoil futures are $0.18 higher at $30.54.  In the outside markets, the Brent crude oil market is $0.52 per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 16 points lower.

Mike

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Soybeans are lower again overnight after trying to gain some upward steam. It wasn't meant to be and, as with the past few days, the rain trumped any demand prospects and prices declined. Industry group Kansas Wheat said in a report this week that yields are in the 50 to 70 bushel an acre range. Some areas are even reporting sporadic yields as high as 90 bushels an acre. Amazing what that normally dry, dusty soil in western Kansas can produce when it gets enough rain. 

Here's what happened overnight:

Brent Crude Oil = 1% higher.

West Texas Intermediate Crude Oil = 1.1% higher.

Dollar = down slightly.

Wall Street = U.S. stock futures slightly lower in overnight trading
World Markets = Global stocks higher as oil futures rise.