Floor Talk March 2
At the close:
At the close, the May corn futures settled 1/2 of a cent higher at $3.56 1/4. May soybean futures finished 3 1/2 cents higher at $8.61 1/2. May wheat futures closed 4 1/4 cents higher at $4.50 1/4. May soymeal futures settled $3.00 per short ton higher at $264.50. May soyoil futures finished $0.17 lower at $30.37. In the outside markets, the Brent Crude oil market is $0.05 lower per barrel, the U.S. dollar is higher, and the Dow Jones Industrials are 8 higher.
On Wednesday, Informa, the privat analytical firm, updated its 2015/16 crop estimates for Brazil.
Soybean production= 101.3 million tonnes, higher than 100.5 million a month ago.
All-corn production= 82.5 million tonnes, up from 81.6 million in February.
Argentina's corn production= 27 million tonnes, up from 26.0 million a month ago.
soybean production= 59.0 million tonnes, below its 60.0 million from last month.
What say you? Big crops get bigger?
At mid-session, the May corn futures are trading 1 1/4 cents higher at $3.57. May soybean futures are 4 1/4 cents higher at $8.62. May wheat futures are trading 2 3/4 cents higher at $4.48. May soymeal futures are $2.40 per short ton higher at $263.90. May soyoil futures are trading $0.18 lower at $30.36. In the outside markets, the Brent Crude oil market is $0.44 lower per barrel, the U.S. dollar is higher, and the Dow Jones Industrials are 16 higher.
Jack Scoville, The Price Futures Group senior grain analyst, says the higher market is due to the markets trying to hold the contract lows in-check and finding short-covering as much as anything else.
“The selling at these levels from producers is hard to find. That includes the South Americans. And, the speculative traders remain very short these markets. We are all waiting for news on plantings and the distribution of planted area, but mostly farmers seem willing to go back to normal rotations,” Scoville says.
He adds, “The trade volumes appear to be light to moderate. The news flow is rather slim. The real, Brazil’s currency, is a little stronger which is helping the rally in beans a bit. Not a lot of demand news.”
According to EIA data, ethanol production averaged 987,000 barrels per day (b/d)—or 41.45 million gallons daily. That is down 7,000 b/d from the week before. The four-week average for ethanol production stood at 981,000 b/d for an annualized rate of 15.04 billion gallons, according to the Renewable Fuels Association news release.
Stocks of ethanol stood at 22.6 million barrels. That is a 2.1% decrease from last week.
At the open:
At the open, the May corn futures are trading 1/4 of a cent lower at $3.55. May soybean futures are 1 1/2 cents lower at $8.56. May wheat futures are trading 1/2 of a cent lower at $4.50. May soymeal futures are $0.70 per short ton higher at $262.20. May soyoil futures are trading $0.26 lower at $30.98. In the outside markets, the Brent Crude oil market is $0.40 lower per barrel, the U.S. dollar is higher, and the Dow Jones Industrials are 45 lower.
Soybeans and corn were slightly higher this morning, though many bears were still running around Chicago, as investors pit Brazil's shipping woes against burdensome global inventories.
At 6:20 am:
Brent Crude Oil = 1.1% lower
West Texas Intermediate Crude Oil = 2.1% lower.
Dollar = up 0.1%
Wall Street = U.S. stock futures were lower, following crude oil.
World Markets = Global stocks mixed amid lower oil prices and optimism that central banks will introduce measures to support the global economy.