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marketeye
Veteran Advisor

Floor Talk March 2

At the close:

The May corn futures settled 1 cents higher at $6.55. The May soybean contract closed 10 1/2 cents higher at $13.33. The May wheat futures ended 10 1/2 cents higher at $6.74 1/2.  The May soymeal futures finished $3.60 per short ton higher at $359.10. The May soyoil futures finished $.19 lower at $54.08.
In the outside markets, the NYMEX crude oil is $1.70 per barrel lower, the dollar is higher and the Dow Jones Industrials are down 18 points.

 

Mike

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At 1pm:

Informa releases 2011-12 new world crop estimates:

--Brazil's soybean crop at 68.0 mmt vs. previous estimate of 70.0 mmt.

--Argentina soybean crop at 47.5 mmt vs. 46.5 mmt previously.

--Argentina corn crop unchanged at 22.5 mmt.

--Ukraine's 2012/13 Ukraine corn production at 24.0 mmt vs. a previous estimate at 22.5 mmt.

 

Mike

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At mid-session:

The May corn futures trade 2 3/4 cents lower at $6.51 1/4. The May soybean contract is trading 3 1/4 cents higher at $13.22 1/2. The May wheat futures are trading 2 cents higher at $6.66.  The May soymeal futures are trading $3.50 per short ton higher at $359.00. The May soyoil futures are trading $.41 lower at $53.86.
In the outside markets, the NYMEX crude oil is $2.56 per barrel lower, the dollar is higher and the Dow Jones Industrials are down 43 points.

 

A lot of the commodities are sinking, due to crude sinking. Soybeans and wheat remain higher. Soybeans are playing off of the strong demand Friday.

 

Mike

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At the open:

The May corn futures trade 3 1/4 cents lower at $6.50. The May soybean contract is trading 3 3/4 cents lower at $13.18 1/4. The May wheat futures are trading 5 cents lower at $6.58.  The May soymeal futures are trading $0.70 per short ton higher at $356.00. The May soyoil futures are trading $.041 lower at $53.87.
In the outside markets, the NYMEX crude oil is $1.40 per barrel lower, the dollar is higher and the Dow Jones Industrials are up 94 points.

 

Mike

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At 8:05am:

WOW!!!

--USDA announces Friday that an 'unknown' buyer purchased 120,000 mt of U.S. soybeans for 2011-12 delivery.

--USDA announces Friday that an 'unknown' buyer purchases 165,000 mt of U.S. soybeans for 2012-13 delivery.

 

 

I'd say that is some enthusiasm! What's your guess, is that 'unknown' China?

 

Mike

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At 7:45am:

A South Korea buyer purchased 126,000 mt of U.S. corn Friday.

 

In general, trade volume is expected to be light today, highlighting the lack of vigor for the markets. This morning, Informa will release its estimates ahead of the March 9 WASDE Report. It's that report that is keeping folks' enthusiasm curbed.

 

Mike

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At 6:45am:

Early calls: Corn 3-5 cents lower, soybeans 4-6 cents lower, and wheat 2-4 cents lower.

 

Trackers:
Overnight grain, soybean markets=Trading lower.
Crude Oil=$0.97 per barrel lower.
Dollar=Higher.
Wall Street=Seen trading steady as Euro leaders head to an agreement designed to help member countries avoid debt crisis.

World Markets=Asia/Pacific is higher, Europe's stocks are lower.

 

 

More in a minute,

 

Mike

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2 Replies
Mizzou_Tiger
Senior Advisor

Re: Floor Talk March 2

It's called demand..........expect more as SA crop shrinks........... Edit......guess maybe those pics were not cherry picked after all........
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marketeye
Veteran Advisor

Re: Floor Talk March 2

A lot of the commodities are sinking, due to crude sinking. Soybeans and wheat remain higher. Soybeans are playing off of the strong demand Friday.
One floor trader says, "The market is being lead around by the soybean demand.
"It's all about the big soybean purchase today, presumably from China. We are seeing lower soybean production totals for Brazil, based on fresh private firm estimates," he says.
Meanwhile, corn prices would be 12-14 cents lower if it wasn't for soybeans, he says. "With the new crop insurance rates, it looks like farmers can make $93 per acre more by planting vs. planting soybeans."
So, the corn market is digesting that new dynamic, he says.

 

One analyst says,
"Demand for soybeans, Argentina's farmer strike at the ports, and lower crop estimates for Brazil's 2011-12 soybean production combine for nice underpinning," he says.
For wheat, today's news that Russia and Australia's 2011-12 wheat production is seen as falling supports that grain's market.

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