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Veteran Advisor

Floor Talk March 23

After the close:

Argentina's truckers have stopped a strike they were staging, according to the Dow Jones Newswire.

 

Mike

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At the close:

The July corn futures settled 1 3/4 cents higher at $6.44 1/2. The July soybean contract settled 15 cents higher at $13.71 3/4. The July wheat futures ended 9 cents higher at $6.64 1/2. The July soymeal futures settled $2.80 per short ton higher at $373.90. The July soyoil futures settled $0.92 higher at $55.29. 
In the outside markets, the NYMEX crude oil is $1.49 per barrel higher, the dollar is lower and the Dow Jones Industrials are up 49 points.

 

Mike

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At mid-session:

The July corn futures trade 3 1/4 cents higher at $6.46. The July soybean contract is trading 15 3/4 cents higher at $13.72 1/2. The July wheat futures are trading 5 cents higher at $6.60 3/4. The July soymeal futures are trading $2.80 per short ton higher at $373.90. The July soyoil futures are trading $0.86 higher at $55.23. 
In the outside markets, the NYMEX crude oil is $1.63 per barrel higher, the dollar is lower and the Dow Jones Industrials are up 30 points.

 

One analyst says, "I think partly this rally is about talk of China needing corn and possibly buying soybeans. But the dollar is sharply lower this morning and there are some lower Brazil estimates around.  RGDS yields are coming in poor, so 67 seems to be more and more common as a production estimate.  Not much going on, most of this seems to be spec/fund buying to me.  I expect markets to stay firm into the close today, I don’t see any selling around and the farmer is not interested right now," he says.

 

Mike

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At 10:45am:

 

Looks like soybeans are holding that surge higher, while corn and wheat tread just above water. Can the markets hold these gains until next week?

 

You have your chance to win something from Successful Farming/Agriculture.com.

Beat the Expert by guessing Monday's closing market price. Check it out. How's your market radar working?

 

Mike

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At the open:

The July corn futures trade 5 3/4 cents higher at $6.49. The July soybean contract is trading 18 cents higher at $13.76 1/4. The July wheat futures are trading 3 1/2 cents higher at $6.59. The July soymeal futures are trading $3.00 per short ton lower at $374.10. The July soyoil futures are trading $0.82 higher at $55.18. 
In the outside markets, the NYMEX crude oil is $1.31 per barrel higher, the dollar is lower and the Dow Jones Industrials are down 22 points.

 

Mike

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At 6:45am:

--China is admitting a corn deficit problem, according to a Dow Jones Newswire story Friday. Even with a record harvest last year, supply will fall short of demand for corn.

--Japan is buying 133,792 mt of milling wheat Friday from Can., Aust., and the U.S.

 

Mike

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At 6:30am:

Early calls: Corn 6-8 cents higher, soybeans 13-14 cents higher, and wheat 3-5 cents higher.

 

Trackers:
Overnight grain, soybean markets=Trading higher.
Crude Oil=$0.35 per barrel higher.
Dollar=Lower.
Wall Street=Seen tradingmixed ahead of U.S. housing data.

World Markets=Mixed-to-lower.

 

 

 

More in a minute,

 

Mike

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10 Replies
Veteran Advisor

Re: Floor Talk March 23

China's admittance of a corn deficit is being called the gift that keeps on giving.

 

Mike

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Veteran Contributor

Re: Floor Talk March 23

I am trying to understand this, at the start of the week China states they are trying to slow down economy and grains take a big hit. Now at the end of the week they are short corn and grains gaining price back. Is it me or is market starting to overreact on any news?
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Senior Contributor

Re: Floor Talk March 23

Sounds like China wanted to move the market down a bit early in the week to make some purchases but I haven't seen where they took advantage of the price drop. Are they losing their savy?

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Veteran Contributor

Re: Floor Talk March 23

I was expecting China to try drop the market like I posted a week and a bit ago but I never seen any big purchases either that's why I'm thinking the market overreacted to the news
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Honored Advisor

Re: Floor Talk March 23

There has been very little coverage of it but there has been a coup or some kind of power struggle inside the top levels of Chinese Govt in the last 3 or 4 days. Even gun fire was reported along with a heavy police presence near the political headquarters.

 

Might have some bearing on their near term actions.

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Senior Contributor

Re: Floor Talk March 23

What is your source of the China news?  (gunfire, etc.)

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Honored Advisor

Re: Floor Talk March 23

China Grain Output May Have Been Overstated, Shanghai JC Says
2012-03-22 04:56:26.378 GMT


By Bloomberg News
March 22 (Bloomberg) -- China’s official grain output may
have been overstated in the past three years by a total of 100
million metric tons, Li Qiang, chairman of Shanghai JC
Intelligence Co., said at an industry forum in Boao today.
Chinese corn users should use their annual import quotas to
buy now, because prices for next season’s supply are relatively
cheap, Li said.
“Now is a window of opportunity,” he said. Government
policies are also shifting towards supporting imports of
agricultural products, he said.

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Honored Advisor

Re: Floor Talk March 23

This isn't it but it is mentioned at the bottom of this article.. It is disappeared from the original two places I found it.

 

 

 http://news.nationalpost.com/2012/03/23/how-bo-xilai-chinas-political-princeling-fell-from-grace-in-...

 

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Senior Contributor

Re: Floor Talk March 23

According to AgResource, China has buy orders around the $6.35 mark on the May futures. 

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