Floor Talk, March 15, 2019
At the close:
At the close, the May futures finished 3¢ higher at $3.73. July futures ended 2 3/4¢ higher at $3.82 1/4.
May soybean futures ended 10 3/4¢ higher at $9.09 1/4. July soybean futures closed 10 3/4¢ higher at $9.23.
May wheat futures closed 9 1/2¢ higher at $4.62 1/4.
May soymeal futures finished 4.90 per short ton higher at $310.80. May soy oil futures settled 0.14 lower at 29.43¢ per pound.
In the outside markets, the NYMEX crude oil market is $0.05 lower, the U.S. dollar is lower, and the Dow Jones Industrials are 142 points higher.
At midsession, the May futures are 1 1/2¢ higher at $3.71 3/4. July futures are 1 3/4¢ higher at $3.80 3/4.
May soybean futures 8 1/4¢ higher at $9.06 3/4. July soybean futures are 8¢ higher at $9.20 1/4.
May wheat futures are 5 1/4¢ higher at $4.58.
May soymeal futures are 3.00 per short ton higher at $308.90. May soy oil futures are 0.02 higher at 29.59¢ per pound.
In the outside markets, the NYMEX crude oil market is $0.26 lower, the U.S. dollar is lower, and the Dow Jones Industrials are 168 points higher.
Jason Roose, U.S. Commodities, says that the bullish market factors are lining up.
“Grains are finding solid support today with fund short covering, wet weather and flooding not ideal for an early planting, and optimism from China that exports will increase on all agricultural products,” Roose says.
In early trading, the May futures are 2¢ higher at $3.72. July futures are 1 3/4¢ higher at $3.81.
May soybean futures are 6 3/4¢ higher at $9.05 1/4. July soybean futures are 6 1/2¢ higher at $9.18.
May wheat futures are 3 1/4¢ higher at $4.56.
May soymeal futures are 2.30 per short ton higher at $308.20. May soy oil futures are 0.03 higher at 29.60¢ per pound.
In the outside markets, the NYMEX crude oil market is $0.41 lower, the U.S. dollar is lower, and the Dow Jones Industrials are 39 points lower.
Al Kluis, Kluis Advisors, says that investors will be watching the March contracts expire today.
“Rumors of China buying corn from the US will prove to be true. There have been rumors of China buying up to 7 MMT of corn from the US annually. This is about 275 million bushels of corn, and would be a big boost to corn fundamentals,” Kluis told customers in a daily note.
At the close on Tuesday, the funds were estimated to be holding over 200,000 short positions in corn, 80,000 shorts in soybeans and 75,000 shorts in wheat.
Kluis added, “The Commitments of Traders report will be released out at 2:30 pm CT today. Rumors are that the funds are holding a record short position in corn and a huge short position in soybeans. This is not negative in the long term.”
Re: Floor Talk, March 15, 2019
So.....China is going to purchase 275 million bushels of corn from the U.S. annually? Heck, the USDA loses and finds 300 million bushels on a regular basis. This is just a drop in the bucket.