Floor Talk, March 19, 2020

[marketeye]

At the close:

At the close, the May corn futures finished 10 1/4¢ higher at $3.45 1/2. July corn futures closed 9 1/4¢ higher at $3.51.

May soybean futures settled 17 3/4¢ higher at $8.43 1/2. July soybean futures closed 15 1/4¢ higher at $8.48.

May wheat futures closed 26 3/4¢ higher at $5.35.



May soymeal futures finished $10.80 per short ton higher at $314.80.

May soy oil futures closed $0.44 cents higher at 25.48¢ per pound.

In the outside markets, the NYMEX crude oil market is $5.31 per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 325 points higher.

Mike

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At midsession:

At midsession, the May corn futures are 15 3/4¢ higher at $3.51 1/2. July corn futures are 15 1/2¢ higher at $3.56 3/4.

May soybean futures are 26 1/4¢ higher at $8.51 1/2. July soybean futures are 23¢ higher at $8.55 3/4.

May wheat futures are 26 3/4¢ higher at $5.35.


May soymeal futures are $12.40 per short ton higher at $316.40.

 May soy oil futures are $0.54 cents higher at 25.58¢ per pound.



In the outside markets, the NYMEX crude oil market is $3.69 per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 137 points higher.

Jack Scoville, PRICE Futures Group, says that The rally in crude oil seems to be supporting all commodities today.

“Plus, all of these markets were really oversold. In beans, we are now competitive with Brazil and I am reading some research on how the Chinese should start buying U.S. This research is coming from China. The export sales report was pretty strong for beans and corn, a little disappointing for wheat. All in all a rather dramatic recovery in a market that is full of dramatic moves these days," Scoville says.

Mike

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At 10am:

The USDA Weekly Export Sales Report, Thursday, shows little buying from China.

Soybeans:  Net sales of 631,600 MT for 2019/2020 were up noticeably from the previous week and up 71 percent from the prior 4-week average. 

Increases primarily for unknown destinations (211,500 MT), Egypt (108,800 MT, including 102,000 MT switched from unknown destinations), Mexico (67,600 MT, including decreases of 1,300 MT), the Netherlands (64,800 MT, including 65,000 MT switched from unknown destinations and decreases of 200 MT), and Japan (64,300 MT, including 37,400 MT switched from unknown destinations and decreases of 5,300 MT), were offset by reductions for Niger (400 MT) and Peru (300 MT). 

For 2020/2021, net sales of 69,600 MT were for unknown destinations (68,000 MT), Canada (1,100 MT), and Japan (500 MT). 

Exports of 483,400 MT were down 15 percent from the previous week and 31 percent from the prior 4-week average.  The destinations were primarily to Egypt (171,700 MT), Mexico (87,100 MT), the Netherlands (64,800 MT), Japan (41,800 MT), and Thailand (21,000 MT). 

Mike

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At 8:45am:

In early trading, the May corn futures are 5 3/4¢ higher at $3.41 1/2. July corn futures are 4 1/2¢ higher at $3.46 3/4.

May soybean futures are 16¢ higher at $8.41 1/2. July soybean futures are 14¢ higher at $8.46 3/4.

May wheat futures are 9¢ higher at $5.17 1/4.



May soymeal futures are $9.90 per short ton higher at $313.90.

May soy oil futures are $0.23 cents higher at 25.27¢ per pound.



In the outside markets, the NYMEX crude oil market is $2.20 per barrel higher at $20.75 per barrel, the U.S. dollar is higher, and the Dow Jones Industrials are 115 points lower.

Separately, the USDA’s Weekly Export Sales Report Thursday shows strong corn demand figures.

Corn= 960,600 metric tons vs. the trade’s expectations of between 600,000-1.3 mmt.

Soybeans= 701,200 metric tons vs. trade’s expectations of 400,000-950,000 mt.

Wheat= 482,100 mt. the trade’s expectations of between 375,000-650,000 mt.

Soybean meal= 129,100 mt. the trade’s expectations of 200,000-400,000mt.

Al Kluis, Kluis Advisors, says that investors will be eyeing how ethanol plant struggles will impact corn prices.

“With the negative ethanol margins and ethanol plants shutting down, we will see corn basis wider for most of the summer," Kluis told customers in a daily note.

Kluis added, "We had another very volatile day in the US stock market. US and world economies continue to feel the pain as economies shut down. Crude oil was down hard again on Wednesday. That put pressure on ethanol, which put pressure on the corn market. Ethanol plants are shutting down, causing basis levels to soften up on corn. However, wheat futures had a nice rally. Wheat millers improved their wheat basis by 40 cents this week as nearby demand for wheat to make bread increases."

Mike

[sw363535]

If you need cheap, low quality(possibly stored on the ground) grain come, we have it on sale.... and we will not reserve anything for ourselves beyond a 30 day supply.  We can go to the grocery store if we need to.

[rickgthf]

Scoville, "reading some research, ..China buying from the US."  

  I'll believe it when I see it.

[roarintiger1]

It doesn’t take much research. Either they are buying or they are not.