Floor Talk, June 20, 2019

[marketeye]

At the close:

At the close, the July corn futures finished 9¢ higher at $4.50. Dec. corn futures finished 7 3/4¢ higher at $4.61 1/4.

July soybean futures settled 12 1/4¢ higher at $9.15 1/4. November soybean futures closed 12 1/4¢ higher at $9.41.

Sep. wheat futures ended 5¢ higher at $5.31 3/4.



July soymeal futures closed $6.10 per short ton higher at $323.00.

 July soy oil futures finished $0.22 higher at 28.59¢ per pound.



In the outside markets, the NYMEX crude oil market is $3.12 higher, the U.S. dollar is lower, and the Dow Jones Industrials are 210 points higher.

Mike

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At midsession:

At midsession, the July corn futures are 6¢ higher at $4.47. Dec. corn futures are 8¢ higher at $4.61 1/4.

July soybean futures are 11¢ higher at $9.14 1/4. November soybean futures are 11¢ higher at $9.39.

Sep. wheat futures are 5 1/4¢ higher at $5.32.



July soymeal futures are $5.20 per short ton higher at $322.10.

 July soy oil futures are $0.18 higher at 28.55¢ per pound.



In the outside markets, the NYMEX crude oil market is $3.19 higher, the U.S. dollar is lower, and the Dow Jones Industrials are 162 points higher.

Mike

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At 9:19am:

In early trading, the July corn futures are 4 3/4¢ higher at $4.45 3/4. Dec. corn futures are 6 1/2¢ higher at $4.59 3/4.

July soybean futures are 7 1/2¢ higher at $9.10 1/4. November soybean futures are 8 1/4¢ higher at $9.37.

Sep. wheat futures are 5¢ higher at $5.31 3/4.



July soymeal futures are $3.30 per short ton higher at $320.20.

 July soy oil futures are $0.14 higher at 28.51¢ per pound.



In the outside markets, the NYMEX crude oil market is $2.28 higher, the U.S. dollar is lower, and the Dow Jones Industrials are 244 points higher.

Al Kluis, Kluis Advisors, says that investors have a lot of information coming at them to digest.

“Since wheat prices continue to find some resistance, corn will, too. The combination of some very overbought grain prices plus good wheat ratings had the market ripe for a correction. We still have a lot of the growing season to get through; volatility is sure to be with us all summer long,” Kluis told customers in a daily note.

Kluis added, “This break in US grain prices is just more of a correction. The bull spreads have been back working the last two days after getting dinged on Monday. Typically, when the bull spreads work, the market will work its way higher.”

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

-- Export sales of 189,000 metric tons of soybeans for delivery to unknown destinations. Of the total, 126,000 metric tons is for delivery during the 2018/2019 marketing year and 63,000 metric tons for delivery during the 2019/2020 marketing year.

-- Export sales of 122,000 metric tons of corn for delivery to Mexico. Of the total, 52,000 metric tons is for delivery during the 2018/2019 marketing year and 70,000 metric tons for delivery during the 2019/2020 marketing year.

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

Mike

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At 7:30am:

USDA Weekly Export Sales Thursday show soybean business was above expectations, corn below.

Wheat:  Net sales of 187,600 metric tons were reported for delivery in marketing year 2019/2020. The primary destinations were Algeria (59,900 MT, including 60,000 MT switched from unknown destinations and decreases of 100 MT), Yemen (58,400 MT), Japan (38,700 MT), Mexico (31,600 MT, including decreases of 20,600 MT), and Guatemala (30,700 MT, switched from unknown destinations). Reductions were reported for unknown destinations (83,900 MT), Indonesia (65,500 MT), and South Korea (6,500 MT). Exports of 431,000 MT were primarily to Indonesia (84,500 MT), the Philippines (65,900 MT), Mexico (61,100 MT), Iraq (52,500 MT), and Vietnam (43,000 MT).

Corn:  Net sales of 38,400 MT for 2018/2019 were down 77 percent from the previous week and 90 percent from the prior 4-week average. Increases were reported for Japan (107,500 MT, including 104,200 MT switched from unknown destinations and decreases of 30,800 MT), Honduras (9,300 MT, including 12,200 MT switched from Guatemala and decreases of 2,900 MT), the French West Indies (8,100 MT), Canada (7,900 MT), and Taiwan (7,500 MT). Reductions were primarily for unknown destinations (61,500 MT), Mexico (22,700 MT), Colombia (21,000 MT), and Guatemala (10,500 MT). For 2019/2020, net sales of 360,800 MT reported for unknown destinations (184,400 MT), Mexico (175,000 MT), and Canada (2,900 MT), were partially offset by reductions for the French West Indies (1,500 MT). Exports of 640,900 MT--a marketing-year low--were down 28 percent from the previous week and 40 percent from the prior 4-week average. The destinations were primarily to Mexico (266,800 MT), Japan (155,900 MT), Saudi Arabia (68,700 MT), Honduras (39,200 MT), and Taiwan (38,400 MT).

Optional Origin: For 2018/2019, decreases totaling 4,000 MT were reported for South Korea. The current outstanding balance of 349,000 MT is for South Korea (186,000 MT), unknown destinations (98,000 MT), and Taiwan (65,000 MT). For 2019/2020, new optional origin sales of 125,000 MT were reported for South Korea (65,000 MT) and Israel (60,000 MT). The current outstanding balance of 375,000 MT is for South Korea (195,000 MT), unknown destinations (120,000 MT), and Israel (60,000 MT).

Barley:  No net sales for 2018/2019 were reported for the week. Exports of 600 MT were primarily to Japan (500 MT).

Sorghum: Net sales of 2,000 MT for 2018/2019 were reported for Mexico. Exports of 3,000 MT were down 94 percent from the previous week and 92 percent from the prior 4-week average. The destination was Mexico.

Optional Origin: For 2018/2019, the current outstanding balance of 10,500 MT is for unknown destinations.

Rice:  Net sales of 28,100 MT for 2018/2019 were down 57 percent from the previous week and 58 percent from the prior 4-week average. Increases were reported for Colombia (10,000 MT), Haiti (7,100 MT), Guatemala (4,500 MT), Honduras (2,500 MT), and South Korea (1,800 MT). Reductions were reported for Jordan (300 MT) and Nicaragua (300 MT). Exports of 69,500 MT were down 57 percent from the previous week and 20 percent from the prior 4-week average. The destinations were to Colombia (24,400 MT), Mexico (23,400 MT), Japan (7,800 MT), Haiti (7,100 MT), and Canada (2,500 MT).

Exports for Own Account:  For 2018/2019, the current exports for own account outstanding balance of 100 MT is for Canada.

Soybeans:  Net sales of 571,500 MT for 2018/2019 were up noticeably from the previous week and up 34 percent from the prior 4-week average. Increases were reported for unknown destinations (141,400 MT), Egypt (110,000 MT), the Netherlands (82,600 MT, including 66,000 MT switched from Argentina and decreases of 3,900 MT), Japan (56,600 MT, including 41,200 MT switched from unknown destinations and decreases of 1,000 MT), and Indonesia (55,700 MT, including 55,000 MT switched from unknown destinations and decreases of 400 MT). Reductions were reported for Argentina (66,000 MT) and Malaysia (800 MT). For 2019/2020, net sales of 200,000 MT were primarily for Thailand (68,000 MT), Pakistan (66,000 MT), and unknown destinations (63,000 MT). Exports of 736,500 MT were down 3 percent from the previous week, but up 28 percent from the prior 4-week average. The destinations were primarily to China (339,800 MT), Indonesia (84,300 MT), Japan (75,500 MT), the Netherlands (62,100 MT), and Mexico (54,900 MT).

Mike

[rickgthf]

I wonder how much of that new soybean buying was triggered by the potential for shortages this fall?  Countries trying to get their beans bought before the price goes up.  

 China still has still has 6 MMT on the books which at the rate they're loading it out is 17 weeks worth with only nine weeks left in the market year and a trump-Xi meeting in a week.

[elcheapo]

A little problem with the big

3 news stories this morning.

It stated enhanced threat of severe

Weather in Western Kansas.

Problem is, if you look at the

Storm prediction center website,

That is not the case.

[k-289]

EL   -  how  soon  to  wheat  cutting  -  or  won't  it  happen  this  year  - ? 

Any  wheat  being  harvested  as  feed  - ?