Floor Talk, May 13, 2020

[marketeye]

At the close:

At the close, the July corn futures finished 4¢ lower at $3.18 1/4. Dec. corn futures finished 3 1/4¢ lower at $3.32 1/2.

July soybean futures closed 12 3/4¢ lower at $8.39 1/4. November soybean futures ended 11 1/2¢ lower at $8.45 1/2.

July wheat futures settled 12 3/4¢ lower at $5.01 3/4.



July soymeal futures closed $1.50 per short ton higher at $290.60.

July soy oil futures closed 0.35 cent lower at 25.91¢ per pound.



In the outside markets, the NYMEX crude oil market is $0.52 per barrel lower at $25.26 per barrel, the U.S. dollar is higher, and the Dow Jones Industrials are 572 points lower.

Jack Scoville, PRICE Futures Group, says that the soybean market took a haircut based on a rift between the U.S. and China.

“The falling wheat market is mostly about EU and Russian weather, with both areas greatly improved with recent rains. The wheat weather situation in the U.S., dry and hot in the southern Great Plains, is being ignored. And, there are some forecasts for showers in the region through the weekend. Soybeans are down, I think, on an article by Bloomberg stating that China will buy according to the trade environment and if the U.S. is nice to it. The U.S. is currently doing the opposite with the coronavirus threats against China. Corn fell in sympathy. It is a seasonal time to rally, so this might be a buying chance. But, the demand side remains pretty tough for ag markets,” Scoville says.

Mike

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At midsession:

At midsession, the July corn futures are 2 3/4¢ lower at $3.20. Dec. corn futures are 2 1/4¢ lower at $3.33.

July soybean futures are 12 3/4¢ lower at $8.39 1/4. November soybean futures are 10 1/2¢ lower at $8.46 1/2.

July wheat futures are 14¢ lower at $5.00.



July soymeal futures are $1.60 per short ton higher at $290.50.

July soy oil futures are 0.28 cent lower at 25.98¢ per pound.



In the outside markets, the NYMEX crude oil market is $0.31 per barrel lower at $25.83 per barrel, the U.S. dollar is higher, and the Dow Jones Industrials are 480 points lower.

Mike

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At 8:45am:

In early trading, the July corn futures are 1 3/4¢ lower at $3.20 1/2. Dec. corn futures are 1 1/4¢ higher at $3.34 1/4.

July soybean futures are 2 3/4¢ lower at $8.49 1/4. November soybean futures are 2 1/2¢ lower at $8.54 1/2.

July wheat futures are 5 3/4¢ lower at $5.08 3/4.


July soymeal futures are $0.10 per short ton higher at $292.20.

July soy oil futures are 0.08 cent higher at 26.34¢ per pound.



In the outside markets, the NYMEX crude oil market is $0.05 per barrel higher at $25.83 per barrel, the U.S. dollar is lower, and the Dow Jones Industrials are 144 points lower.

On Wednesday, private exporters reported to the USDA export sales of 396,000 metric tons of soybeans for delivery to China. Of the total, 198,000 metric tons is for delivery during the 2019/2020 marketing year and 198,000 metric tons is for delivery during the 2020/2021 marketing year.

The marketing year for soybeans began Sept. 1.

Al Kluis, Kluis Advisors, says that investors will be watching crop progress and exports, going forward.

"Corn traders desperately want to see ethanol turn around. The fastest way for new crop corn carryout to drop is cranking up ethanol production. Chinese exports would help greatly, but that is a wildcard at this time," Kluis told customers in a daily note. Can July corn move over $3.24? That is the high from Tuesday. Rising over it would indicate that bulls are gaining momentum after a bearish report."

Kluis added, "The USDA report on Tuesday put new crop carryover right in the range that traders were expecting. Granted, this is the first report with these numbers, so it is expected that we will see adjustments as we progress this season. At this point, corn and wheat are worrying traders as supplies look very ample. Exports will need to pick up greatly to offset loss of demand in other areas."

What say you?

Mike

[rickgthf]

What is there to say about the price of corn (or ethanol)?  Nothing really.   On the other hand, since the bars have been closed and the late-night traffic reduced, there are noticeably fewer animal carcasses along the highways and the number of car wrecks seems to have declined.  Some small consolation anyhow.

[samalan1140]

Nice purchase of soybeans and the idiot traders knock our prices down cause they believe the BS usda report shocking.

[illinifarmer]

Everything was headed in the right direction and then ... a rift with China??  Come on fellas really?  IMO he meant to say a failed 3 year trade debacle that was more than assured for the American farmers benefit.  Yikes, grain gains wiped out just like that.  How many of these analysts and traders have them wondering moments of Deja vu? Well we’ll see what tomorrow brings for the headlines (markets).  Raining here next few days, crops struggling. Same storyline different day.