Floor Talk March 22
At the close:
At the close, the May corn futures finished 2 1/2¢ lower at $3.58 3/4, while December futures finished 2 1/2¢ lower at $3.82. May soybean futures ended 1 3/4¢ lower at $9.99 3/4. November soybean futures settled 1/2¢ higher at $9.98 3/4. May wheat futures closed 4 1/4¢ lower at $4.22 1/4. May soy meal futures settled $2.30 per short ton lower at $323.50. May soy oil futures closed $0.38 higher at 33.52¢ per pound. In the outside markets, the Brent crude oil market is $0.23 per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 30 points lower.
FC Stone sees more corn acres than most. Also, the U.S. weekly ethanol production dropped last week.
FC Stone released its acreage estimates, ahead of next week's USDA report.
Corn= 91.6 million acres
Soybeans= 87.3 million acres.
On Wednesday, EIA data showed last week's U.S. ethanol production averaged 1.044 million barrels per day (b/d)—or 43.85 million gallons daily. That is down 1,000 b/d from the week before, but the 21st straight week over 1 million b/d. The four-week average for ethanol production increased to 1.037 million b/d for an annualized rate of 15.9 billion gallons.
Stocks of ethanol stood at 22.6 million barrels, the lowest in five weeks. That is a 0.9% decrease from last week and the third consecutive weekly decrease.
Imports of ethanol were nonexistent for the 29th straight week.
At mid-session, the May corn futures are 1 1/4¢ lower at $3.60, while December futures are 1 1/2¢ lower at $3.83. May soybean futures are 5¢ lower at $9.96. November soybean futures are 2 3/4¢ lower at $9.95. May wheat futures are 3/4¢ lower at $4.25. May soy meal futures are $0.70 per short ton lower at $325.10. May soy oil futures are $0.25 lower at 32.89¢ per pound. In the outside markets, the Brent crude oil market is $0.41 per barrel lower, the U.S. dollar is lower, and the Dow Jones Industrials are 8 points lower.
Jack Scoville, The PRICE Futures Group’s Senior Market Analyst, says that it has generally been a quiet trade.
“Soybeans and soybean meal markets remain pressured from big competition from South America. Even if some of the highest production estimates for Brazil seem to be overdone, there is no doubt the crop is big, though, and the Brazilian farmers are selling soybeans these days, too,” Scoville says.
Wheat is a weather market and the forecast for the dry areas of the Great Plains call for rain, he says.
“Corn market is just along for the ride, but holding support and support should hold now on good demand ideas,” Scoville says.
In early trading, the May corn futures are 1¢ lower at $3.60, while December futures are 3/4¢ lower at $3.83. May soybean futures are 3 1/2¢ lower at $9.98. November soybean futures are 3¢ lower at $9.95. May wheat futures are 4¢ lower at $4.22 1/2. May soy meal futures are $1.50 per short ton lower at $324.30. May soy oil futures are $0.13 lower at 33.01¢ per pound. In the outside markets, the Brent crude oil market is $0.66 per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 27 points lower.
On Wednesday, private exporters reported to the U.S. Department of Agriculture the following activity:
--Export sales of 120,000 metric tons of hard red winter wheat for delivery to Saudi Arabia during the 2016/2017 marketing year; and
--Export sales of 120,000 metric tons of soybeans for delivery to China during the 2017/2018 marketing year.
The marketing year for wheat began June 1; soybeans began Sept. 1.
Wheat futures were lower overnight as a storm that's now forming in the Rockies is expected to sweep down into the High Plains and southern Midwest tomorrow and Friday, bringing much-needed rain to the region. Hopefully it's just rain and not large hail or super strong winds as expected. Seems the HRW guys in the panhandles can't catch a break so far this spring. Wheat lost about 3 cents, corn was little changed and beans were down a couple pennies. CWG released its seasonal forecast, which said there is some risk that a quarter of the Midwest is at risk of lack of rainfall this summer, but that may be offset by lower-than-normal high temperatures.
Here's what happened overnight:
Brent Crude Oil = 1.3% lower.
West Texas Intermediate Crude Oil = 1.2% lower.
Dollar = up 0.1%.
Wall Street = U.S. stock futures lower in pre-market trading.
World Markets = Global stocks decline following yesterday's drop in U.S. equities