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Veteran Advisor

Floor Talk, March 11, 2020

At the close:

At the close, the May corn futures settled 3¢ lower at $3.74. July corn futures ended 3¢ lower at $3.76.

May soybean futures closed 3¢ lower at $8.73 1/4. July soybean futures settled 3 3/4¢ lower at $8.80 1/4.

May wheat futures ended 9 1/2¢ lower at $5.12 3/4.

May soymeal futures ended $0.30 per short ton lower at $301.60.

 May soy oil futures closed $0.14 cents lower at 27.53¢ per pound.



In the outside markets, the NYMEX crude oil market is $0.86 per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 1,400 points lower.

The World Health Organization designated the novel coronavirus a pandemic, as more than 118,000 cases of it have been reported worldwide, which have resulted in 4,291 deaths.

The Dow plunged, following the announcement. The 30 industrials has now entered a bear market, falling 20% from its February peak.

 

Mike

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At 11:10am:

Ethanol production slows for the week, stocks drop too.

According to EIA data analyzed by the Renewable Fuels Association for the week ending Mar. 6, ethanol production slowed, declining 3.2% or 35,000 barrels per day (b/d), to 1.044 million b/d—equivalent to 43.85 million gallons daily.

However, the four-week average ethanol production rate increased 0.3% to 1.054 million b/d, equivalent to an annualized rate of 16.16 billion gallons.

Ethanol stocks moderated to a five-week low of 24.3 million barrels, settling 2.5% below the prior week’s record. Inventories shifted lower across all regions except the West Coast (PADD 5), where stocks lifted 8.2%.

 

Mike

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At midsession:

At midsession, the May corn futures are 2 3/4¢ lower at $3.74. July corn futures are 2 1/4¢ lower at $3.76.

May soybean futures are 2 1/4¢ higher at $8.78. July soybean futures are 2 1/4¢ higher at $8.86 1/4.

May wheat futures are 7 1/2¢ lower at $5.14 3/4.

May soymeal futures are $1.30 per short ton higher at $303.20. May soy oil futures are $0.01 cents higher at 27.68¢ per pound.



In the outside markets, the NYMEX crude oil market is $1.15 per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 1,096 points lower.

Darin D. Fessler, Lakefront Futures & Options LLC, says that the markets are focused on the outside markets.

“Outside fears continue to impact the ag sector but also fundamentals for corn could really turn bearish should we get 94.0 million acres at month end. Trendline yields happen over 80% of the time over the last 30-yr have to be respected. Watch crude oil. This slide in prices is not bullish ethanol putting more pressure on the corn market. I continue to think soybeans could be a sleeper market should demand come back and say we don’t get enough acres,” Fessler says.

Mike

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At 8:45am:

In early trading, the May corn futures are 1 1/4¢ lower at $3.76 1/2. July corn futures are 1 1/4¢ lower at $3.78.

May soybean futures are 2 1/4¢ higher at $8.78. July soybean futures are 2 1/4¢ higher at $8.86 1/4.

May wheat futures are 4 1/4¢ lower at $5.18.

May soymeal futures are $2.40 per short ton higher at $304.30.

May soy oil futures are $0.08 cents lower at 27.59¢ per pound.



In the outside markets, the NYMEX crude oil market is $1.30 per barrel lower, the U.S. dollar is lower, and the Dow Jones Industrials are 720 points lower.

Private exporters reported to the USDA export sales of 194,000 metric tons of soybeans for delivery to unknown destinations. Of the total, 126,000 metric tons is for delivery during the 2019/2020 marketing year and 68,000 metric tons is for delivery during the 2020/2021 marketing year

The marketing year for soybeans began Sept. 1.

Al Kluis, Kluis Advisors, says that the equity market's will need to keep improving before the grain markets gain strength.

“The stock market and other major outside markets will need to keep posting gains in an orderly fashion before grains will get back to a more normal trading pattern."

Kluis added, "The monthly USDA report on Tuesday did not waver far from pre-report estimates. World wheat stocks were larger than traders expected. However, wheat prices are near contract lows in many cases. The news was not bearish enough to encourage new shorts to jump in at current prices. The outside markets had a rollercoaster day on Tuesday that ended with most markets posting sizable gains."

 

What say you?

 

Mike

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2 Replies
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Honored Advisor

Re: Floor Talk, March 11, 2020

Might need to add toilet paper futures or at least updates..

 

https://m.youtube.com/watch?v=Gysu0kgFwT0

 

 

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Highlighted
Senior Advisor

Re: Floor Talk, March 11, 2020

Could  ,  may  &  might  being  the  financial  magic  words  -  -  -   

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