At the close:
The July corn futures settled 16 1/2 cents higher at $5.83 1/4, while the Dec. contract ended 8 1/4 cents higher at $5.16. The July soybean contract closed 36 cents higher $13.85, while the Nov. 2012 contract settled 22 cents higher at $12.99 3/4. The new-crop soybean contract reached a high of $13.06. The July wheat futures settled 8 cents higher at $6.21 1/2. July soyoil futures closed $0.80 higher at $49.30. The July soymeal futures finished $15.20 per short ton higher at $415.20.
In the outside markets, the NYMEX crude oil is $1.05 per barrel higher, the dollar is lower and the Dow Jones Industrials are up 213 points.
Farm markets are strong. One floor trader says the market has yet to build in crop-stressing weather. "In my opinion, the market has no weather risk built in at all. To me, a 160-165 bushel per acre corn yield would drive futures down to $4.25-$4.50 area. On the flip side, a 150 yield or lower could send prices to $6.50-plus. Also, the Chinese weather has been hot/dry. Meanwhile, the European debt issues have the market spooked," he says.
Look for higher markets tonight, when the trading starts at 5pm.
Mike
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At mid-session:
The July corn futures trade 16 1/2 cents higher at $5.83 1/4, while the Dec. contract trades 11 1/4 cents higher at $5.19. The July soybean contract is trading 34 3/4 cents higher $13.84 1/4, while the Nov. 2012 contract trades 22 cents higher at $12.99 3/4. The July wheat futures are trading 11 1/2 cents higher at $6.24 3/4. July soyoil futures trade $0.94 higher at $49.44. The July soymeal futures are trading $12.80 per short ton higher at $412.80.
In the outside markets, the NYMEX crude oil is $1.57 per barrel higher, the dollar is lower and the Dow Jones Industrials are up 214 points.
Mike
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At 10:40am:
An updated weather forecast is showing some reprieve for the Midwest, between June 11-13. Cooler temps and .50-1.00-inch rains possible. We'll see if the market pulls back on this new weather. Keep in mind, there will be 10 forecast updates during the next five days, two per day. Or, will it want to see the rain fall first?
Thanks,
Mike
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At 10am:
Everything is up double-digits. Why? Here is one floor trader's take:
"The weather is too dry and the implied carryout for old-crop corn and new-crop beans are too tight for this market to trifle with a short position. Yet, we have pared long positions down significantly and even find soy oil today at a record short. The market has its head in the sand. With system traders blindly following the nearby trend downward and citing financial markets as an excuse to discount the weather problems, this will change if the drier trend continues. Need a general 1 to 2-inch rain with wide coverage now to make 166 corn yield. If we miss rain next week, we will be off to the races on these markets," he says.
Mike
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At the open:
The July corn futures trade 13 1/2 cents higher at $5.81, while the Dec. contract trades 9 1/2 cents higher at $5.16. The July soybean contract is trading 32 cents higher $13.81 1/2, while the Nov. 2012 contract trades 19 cents higher at $12.96. The July wheat futures are trading 15 cents higher at $6.28. July soyoil futures trade $1.04 higher at $49.54. The July soymeal futures opened $9.20 per short ton higher at $409.20.
In the outside markets, the NYMEX crude oil is $1.37 per barrel lower, the dollar is lower and the Dow Jones Industrials are up 143 points.
Mike
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At 8am:
USDA announces Wednesday that China bought 120,000 mt of U.S. soybeans for 2011-12 delivery.
Oh my, China is needing old-crop soybeans! Can't get them from Brazil, as this Dow Jones Newswire story reports today.
It looks like there is only one store in town. U.S. is the name of that store.
Mike
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At 6:40am:
Early calls: Corn 7-8 cents higher, soybeans 14-15 cents higher, and wheat 5-7 cents higher.
Trackers:
Overnight grain, soybean markets=Trading higher.
Crude Oil=$1.15 per barrel lower.
Dollar=Lower.
Wall Street=Seen starting higher.
World Markets=Higher.
More in a minute,
Mike
