Floor Talk, March 2, 2020

[marketeye]

At the close:

At the close, the May corn futures closed 7 1/4¢ higher at $3.75. July corn futures settled 6¢ higher at $3.78.

May soybean futures ended 8 1/2¢ higher at $9.01. July soybean futures finished 9 1/4¢ higher at $9.10 1/2.

May wheat futures closed 1 1/2¢ lower at $5.23 1/4.



May soymeal futures finished $3.30 per short ton higher at $308.90.

 May soy oil futures closed $0.23 cents higher at 28.91¢ per pound.



In the outside markets, the NYMEX crude oil market is $2.31 per barrel higher, the U.S. dollar is lower, and the Dow Jones Industrials are 717 points higher.

Jason Roose, U.S. Commodities, says that the grains are having a short covering rally, today.

"It's a pleasant surprise, with bullish news in short demand but vulnerable to more of a recovery. There's added premium with the funds leaning heavily short. With the U.S. dollar sharply lower, and continued optimism that China will purchase corn, DDG and soybeans and increase demand," Roose says.

Mike

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At 8:45am:

In early trading, the March corn futures are 3 1/4¢ higher at $3.70. May corn futures are 3 1/4¢ higher at $3.71 1/2.

May soybean futures are 8 1/2¢ higher at $9.01 1/4. May soybean futures are 8 1/4¢ higher at $9.09 1/2.

May wheat futures are 3 3/4¢ lower at $5.21 1/4.

May soymeal futures are $3.00 per short ton higher at $308.60.

May soy oil futures are $0.31 cents higher at 28.99¢ per pound.



In the outside markets, the NYMEX crude oil market is $1.13 per barrel higher, the U.S. dollar is lower, and the Dow Jones Industrials are 209 points higher.

Al Kluis, Kluis Advisors, says that investors are watching demand and the outside markets for direction.

“The bull spreads are working in the corn and soybean markets. This tells us demand is starting to improve at these lower price levels," Kluis stated in a daily note to customers.

Kluis added, "Watch the US stock market. If prices plunge and close below the low made last Friday, then the grain markets will be pulled lower as well."

Mike

[roarintiger1]

The money should be pouring into farm commodities........securing the safe food supply.  End of discussion.

[illinifarmer]

In all fairness you’ll have to ask al why he’s so determined if the markets turn lower and plunge again that it will in turn pull the grains lower as well.?  Where’s the markets rising over the last two years haven’t pulled the grains higher at all?  This has become a trend in grains for positive news to hold prices steady to slightly lower and negative news used to drive markets lower.  Daily Question: when was the last time grains were limit up? Also what was the reasoning and support for the jump.?

[rsbs]

seasonal "john deere low" should be over, and the normal spring rally in corn and soybeans should commence.

[rickgthf]

When the market goes down, both the stock market and grain market, they rarely go down continuously without stopping occasionally to bleed out the losers and pull in a few new suckers.  That's what it could be doing here.

  On the other hand, China went back to work (I got a message this morning saying an item I had ordered was shipped) and if China goes back to work then those losses will be less, oil & gas consumption will resume, etc.  On the other hand,  just because they went back to work doesn't mean the epidemic won't flare up again.

  But the losses are going to continue, Asian air traffic is off 80%, and that's got to hurt.

   As for grains, ethanol's down because oil (& gasoline) is down and if Europe or the US goes into widespread shutdown, ethanol (& corn) will follow oil down.  Meanwhile, there's no evidence of any China buying here in the US, nor would you expect that for many months now.

  I'm not going to get too excited yet.

[k-289]

Huge  volumes  of  chaos ,  volumes  of   commissions,  all's  well  that  ends well  -  maybe  ?