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Veteran Advisor

Floor Talk, March 21, 2019

At the close:

 

At the close, the May futures finished 4 3/4¢ higher at $3.76 1/4. July futures are 4 1/2¢ higher at $3.85.

May soybean futures settled 4 1/2¢ higher at $9.10 1/2. July soybean futures ended 4 3/4¢ higher at $9.24 1/4.


 

May wheat futures closed 1 3/4¢ higher at $4.66 1/2.



 

May soymeal futures closed 3.70 per short ton higher at $315.30. 

May soy oil futures settled 0.17 lower at 29.10¢ per pound.



 

In the outside markets, the NYMEX crude oil market is $0.14 lower, the U.S. dollar is higher, and the Dow Jones Industrials are 242 points higher.

 

Mike

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At 11:25am:

 

At midsession, the May futures are 5¢ higher at $3.76 1/4. July futures are 4 3/4¢ higher at $3.85.

May soybean futures are 3 1/2¢ higher at $9.09. July soybean futures are 3 1/2¢ higher at $9.23.

May wheat futures are 1¢ lower at $4.63.



 

May soymeal futures are 2.10 per short ton higher at $313.70.

 May soy oil futures are 0.06 lower at 29.21¢ per pound.



 

In the outside markets, the NYMEX crude oil market is $0.14 lower, the U.S. dollar is higher, and the Dow Jones Industrials are 182 points higher.

 

Britt O'Connell, Cash Advisor for Commodity Risk Management Group, says that corn has found support.

 

“Corn is up about nickel, which is as high as futures have been in a couple of weeks. The U.S. branch of one of China's state owned grain buyers is rumored to be a buyer of U.S. corn this morning from both the PNW and the Gulf,” O’Connell says.

 

O’Connell adds, “Many millions of bushels of barge corn has traded so far this morning, so hopefully where there is smoke there is fire. If it is confirmed that China is importing U.S. corn, are speculative funds going to hold their near record short futures positions?”

 

 

Mike

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At 9:35am:

In early trading, the May corn futures are 1 3/4¢ higher at $3.73. July corn futures are 1 1/2¢ higher at $3.82.

May soybean futures are 1/2¢ higher at $9.06 1/2. July soybean futures are 1/2¢ higher at $9.20.


 

May wheat futures are 5¢ lower at $4.59 3/4.



 

May soymeal futures are 0.50 per short ton lower at $311.10.

 May soy oil futures are 0.15 higher at 29.42¢ per pound.



 

In the outside markets, the NYMEX crude oil market is $0.08 lower, the U.S. dollar is higher, and the Dow Jones Industrials are 25 points higher.

 

Al Kluis, Kluis Advisors, says that the U.S., China trade talk is getting to be old hat for investors.

 

“It is almost as if the market is trying to put everyone to sleep. Talks with China continue to progress. However, the market is running out of patience, and wants to see some action--enough with the talk already,” Kluis told customers in a daily note.

 

He added, “The Fed’s announcement of "no more interest rate hikes this year" in the US has many traders thinking we could possibly see an interest rate reduction by the year-end. This news put pressure on the US dollar. That is positive to US grain and meat prices.”

 

On Thursday, the USDA’s Weekly Export Sales Report weak soybean figures.

 

Corn= 795,900 metric tons vs. the trade’s expectations of between 600,000-1.300,000 mmt.

 

Soybeans= 335,100 mmt. vs. the trade’s expectations of between 800,000 mt.-1.5 mmt.

 

Wheat= 437,400 mt. the trade’s expectations of between 350,000-1.2 mmt.

 

Soybean meal= 97,400 mt. the trade’s expectations of between 100,000-400,000 mt.

 

Mike

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4 Replies
Veteran Advisor

Re: Floor Talk, March 21, 2019

My guess is the wet areas in Nebraska and western Iowa are not going to be enough to affect grain futures very much.  First because we have a big carry-out and secondly because no matter how much the locals think they grow, the buyers will say there is going to be plenty of production elsewhere.

 

What do you think?  will it have much affect outside the local basis?

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Veteran Advisor

Re: Floor Talk, March 21, 2019

Jim,

 

Working on a story about how the damaged grain will have to be destroyed. But, still trying to find out preliminary estimates on how many bushels this equates to.

 

Mike

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Honored Advisor

Re: Floor Talk, March 21, 2019

You know this destroyed grain won't matter in the big picture.  USDA will have them planting record acres of corn in 3-4 weeks in those flooded areas.

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Highlighted
Honored Advisor

Re: Floor Talk, March 21, 2019

Sue Martin was on the WHO Big Show.  Now I`m not gonna jinx it by talking about "turning any corners" ... Sue didn`t have the "rally cheerleader skirt" on, but she was definitely showing some ankle.  She said, China`s corn auction only sold 1% which makes one think their corn quality is poor.  Australia won`t have a crop (to sell) because bad weather.  And we`re at some kind of "solar minimum" which only occurs every 200 years that caused the flooding and I`ll just add maybe fireworks this summer?   

 

But Sue had a lot of good stuff and will be on Market to Market tomorrow

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