Floor Talk June 22

[marketeye]

Come One Come All:

Today, Marketeye is reporting from the Tools of the Future Event in Ankeny, Iowa. You are invited to stop by the FFA Enrichment Center to view the latest technology in farming. The event starts at 8:30am and will last untl around 5pm. Come on by, if you are rained out of your fields, and you are interested in learning what's around the bin in ag technology. I'd like to meet you, while you're here.

Show Topics:

8:45-10:15am    Soil Health

10:30-12:00pm  Big Data Return On Investment

12:00pm-1:30pm: Free lunch (Now I got your attention 🙂

1:30-4:00pm: Parade of Innovation

4:00-5:00pm:  Speaker interaction and Trade Show

COME ON OVER!!!!

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At 9:43am:

Tired of fighting corn, soybean prices? We're finding that cover crops are a hot topic. Dave Mowitz filed this report from the Tools of the Future event.

High Interest In Cover Crops

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At the close:

At the close, the July corn futures settled 6 3/4 cents higher at $3.60 per bushel. The Dec corn futures closed 4 cents higher at $3.73 per bushel. 

July soybean futures finished 17 3/4 cents higher at $9.89. Nov. soybean futures closed 19 3/4 cents higher at $9.59.

July wheat futures finished 13 cents higher at $5.01 1/2.

July soymeal futures settled $9.30 per short ton higher at $332.40. July soyoil futures finished $0.41 higher at $32.96.  

In the outside markets, the Brent Crude oil market is $0.25 lower per barrel, the U.S. dollar is higher, and the Dow Jones Industrials are 114 points higher.

Mike

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At mid-session:

At mid-session, the July corn futures are trading 4 cents higher at $3.57 per bushel. The Dec corn futures are 2 1/2 cents higher at $3.71 per bushel. 

July soybean futures are trading 17 1/2 cents higher at $9.88 1/2. Nov. soybean futures are trading 16 3/4 cents higher at $9.56.

July wheat futures 15 cents higher at $5.03.

July soymeal futures are trading $8.10 per short ton higher at $331.20. July soyoil futures are trading $0.55 higher at $33.10.  

In the outside markets, the Brent Crude oil market is $0.56 lower per barrel, the U.S. dollar is lower, and the Dow Jones Industrials are 139 points higher.

Mike

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At 9am:

Ahead of the USDA June 30th Report, a lot of positioning is alrady occuring. The word is that traders want to be long July/short Nov soybeans. Also, traders want to be long soybeans/short corn. The July soybean/corn price ratio is 2.8:1.

What do you think?

Mike

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At the open:

At the open, the July corn futures are trading 1/2 of a cent higher at $3.53 per bushel. The Dec corn futures are 1/4 of a cent lower at $3.68 per bushel. 

July soybean futures are trading 7 cents higher at $9.78. Nov. soybean futures are trading 6 cents higher at $9.46.

July wheat futures 5 cents higher at $4.94.

July soymeal futures are trading $2.30 per short ton higher at $325.40. July soyoil futures are trading $0.22 higher at $32.77.  

In the outside markets, the Brent Crude oil market is $0.21 higher per barrel, the U.S. dollar is higher, and the Dow Jones Industrials are 110 points higher.

Mike

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At 8am:

On Monday,

Private exporters reported to the USDA export sales of 147,077 metric tons of soybean cake and meal for delivery to Mexico.  Of the total 113,329 metric tons is for delivery during the 2015/2016 marketing year and 33,748 metric tons is for delivery during the 2016/2017 marketing year. 

The marketing year for soybean cake and meal began Oct. 1.

Also:

If you missed it, Friday afternoon’s Disaggregated CFTC Report showed the managed money funds dropped 39,000 net corn contracts on the week ending last Tuesday (6/16). That was 17,000 net more than what daily trade estimates. Soybeans and meal beat expectations by gaining 19,000 and 10,500 net on the week, while oil dumped a sharp 25,000 and Chi wheat lost over 13,000 net on the week. Producers and merchants added nearly 27,000 corn, nearly 30,000 bean oil, and nearly 15,000 wheat on the week, while dumping 18,500 beans & 12,600 meal.

Mike

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At 6:45am:

Early calls: Corn 1-2 cents lower, soybeans 3-5 cents higher, and wheat 2-4 cents higher.

Trackers:
Overnight grain, soybean markets = Trading mostly higher.
Brent Crude Oil = $0.46 higher.
Dollar =Higher.  
Wall Street = Seen higher, investors bet on Greece's bailout sticking.

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

More in a minute,

Mike

[roarintiger1]

It looks like southern Minnesota, northern Iowa, and points farther to the east are in the weather bullseye today.......(Hope everyone stays safe!)  More crop damage being done or.....are we making more bushels today?

[westernia80]

"Rain makes grain"  Corn plants do best when underwater, they stay cooler that way.

[marketeye]

roarintiger1,

Father's Day took me on a trek to southwest Iowa. Along the way, it was very evident that farmers are having a tough time fighting weeds. Weeds that were sprayed were not dying. Some fields had weed populations that were really high. Followed one planter that a farmer was using to "mud" some beans in. He was trying to replant the bare spots. Another farmer was actually in the field planting beans. Both units were in bottom ground.

But, the point here is, it appeared the farmers were having to spend a lot more money on a crop that is already worth below cost of production levels. With the markets not tracking the heighth of the weeds, you sure felt for those guys/gals that were out there trying to get a crop in. I know, I know, they were trying to fulfill their prevent plant duties. But still.

Mike

[westernia80]

Marketeye, that is my area where I am at.  Its not that weeds aren't dying, this is just the first they got sprayed.  We have had 6 days in a row now with sun and no rain.  Saw some guys yesterday on the Missouri bottom planting beans for the first time.  Most of those fields are 160 or 320 acres not small ones.  Insurance date for us was the 15th.  Those beans will be lucky to make 30 bu. if they dont get flooded again.

[marketeye]

westernia80,

I didn't get the basis prices, while I was there. What's the basis like in your area? What's the marketing plan, considering late planting, yield cuts, but still a weak market? Are you still sitting on plenty of old crop?

Thanks,

Mike

[sw363535]

I listen to that same foolishness.....

Jeff if there are twice as many rainy days in april and may and a few windy days and you just can't get all the bases covered.  YELL as loud as possible.....That xxx, xxx chemical won't kill weeds..... lieing just makes a sprayer operator feel better....  especially if a guy going down the road will do it for him.... Chemical reps love it as well, cause now they can sell a spray additive for twice as much to add to the next mix on that acre...... which just happens to be two months behind schedule....

Every actual application done "last week" -- weeds are dieing just fine,,, It is the immaginary applications done last week that are not responding to the chemical...

[westernia80]

Corn: Cargill Blair Nebraska spot bid is .07 over,  NC is .25 under  Beans: Cargill Council Bluffs, spot is .05 under NC is .45 under.

I have been done planting for 2 weeks.  I am in the hills so I didn't have that much trouble getting done.  There is a lot of beans that have not emerged yet.  Some corn looks excellent, some dead and a lot that is yellow if the ground is flat or not well drained.  Some corn is canopied and some is only about 2 leaves.  So its all over the board as will be yields.  Sold the last of old crop corn last month.  Beans were gone in Jan.  80% crop ins. is my marketing plan.  I have a floor if the market goes down and topside is open.