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marketeye
Veteran Advisor

Floor Talk May 13, 2021

At midsession:

At midsession, the July corn futures are 37 1/2¢ lower at $6.77. New crop September futures are 32 3/4¢ lower at $5.88. December corn futures are 30 1/2¢ lower at $5.62.

July soybean futures are 48 3/4¢ lower at $15.93 1/2. August soybean futures are 41¢ lower at $15.31. New crop November soybean futures are 42¢ higher at $14.01 1/4.

July wheat futures are 24 3/4¢ lower at $7.05.


July soymeal futures are $21.70 per short ton lower at $427.10.


July soy oil futures are $0.33 lower at 66.07¢ per pound.

In the outside markets, the NYMEX crude oil market is -2.05 lower (-3.10%) at $64.03. The U.S. dollar is higher, and the Dow Jones Industrials are 442 points higher (+1.32%) at 34,030 points.

 

Mike

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At the open:

 

Corn, soybean double-digit gains from Wednesday disappear.

 

 

Mike

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At 7:30am:

 

Separately, the USDA’s Weekly Export Sales Report Thursday shows strong demand figures for corn.

Corn= 2.19 million metric tons (mmt.) vs. the trade expectations of 800,000-2.1 mmt. Of that total, China bought 1.36 mmt.

Soybeans= 196,800 mt. vs. the trade's expectation of 200,000-650,000 mt.

Wheat= 298,300 mt. vs. the trade's expectations of 200,000-400,000 mmt.

Soybean meal= 106,600 mt. vs. the trade's expectations of 70,000-280,000 mt.

 

Mike

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7 Replies
Hobbyfarmer
Honored Advisor

Two things..

#1:

Corn is still getting sold and used up

#2

Wheat is also getting subsututed for corn and getting used up.

Result is there will be no massive burdensome supplies.

Better hope for a decent crop here in the northern hemisphere (both sides of the globe) to advert hunger and unrest in the lower income class of the world.

Most of the crops out there now have been sold at 40 to 50% of today's prices. Very little at these new levels.

It appears Brazil's corn crop is not going to be anything but mediocre but enough to sustain their growing livestock industry with some to sell globally.

Ours is still a total mystery.

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cborman11
Senior Contributor

Re: Floor Talk May 13, 2021

Traders with heads up their ***** again I see.

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sw363535
Honored Advisor

Re: Two things..

#3.  Feeder cattle futures are back in the high ranges of 2020 with a solid day nearly touching $154.00

#4..... Yesterday while it was Cool the grain bins got swept in the sw and we are ready for that meager wheat crop that got a small shower earlier this week.  We have some solid broker demand for all things wheat, measured by calls and protein bonus "talk".  But at this point the offers to use our storage free by offering a small bonus for the crop won't be enough to overcome the temptation to deliver it to local storage and keep the bins clean for corn and grain sorghum.... What should the handling charges be???   On the day after the bins get cleaned in and out charges get pretty high.  Nastiest job of the year.   (IMO it will take a $0.60 cent bonus to handle it twice in the next 90 days, with basis pretty high and feeders needing it the old red flag of protein bonus may not work... we will get offered 25 cents for a $1.50 bonus the broker will pocket)... since no til and corporate seed ownership... the level of mold in those bins has been super high.  Primary culprit was wind.  Those mega winds in 2020 damaged a high % of the corn crop hitting different areas on different days (ours being mid June). Every time a corn plant gets the 70mph shakedown, every one of those stress points gets to grow some fungus.... Farmers lung.  One of those issues that seems to go away when supply is tight...  but is a struggle to market into usda's abundance.  Hopefully we are not visiting doctors the rest of the week.

 

 

 

Pratt, Ks....... Steers upper end....MACKSVILLE Black 1007 125.00 HEPLER Mixed 886 125.00 BUFFALO OK Mixed 902 124.75 HENNESSEY OK Black 948 124.75 MACKSVILLE Black 1003 124.35 MARLAND OK Mixed 930 124.25 ALVA OK Mixed 917 123.75 CHEROKEE OK Mixed 943 123.50 CHEROKEE OK Mixed 938 122.25 HARPER Black 1004 121.60 ENID OK Black 987 121.60 ENID OK Black 994 121.50 CARRIER OK Black 938 121.35 ENID OK Black 1000 121.25 PERRY OK Red 986 120.10 ALVA OK White Face 983 119.00 ALVA OK Mixed 1006 117.00

Woodward, Okla.......Compared to last week: Slaughter cows and bulls steady to 1.00 higher Supply included 632 cows and bulls with 79% going to the packers. Demand was moderate to active. Quality was average. Supply included: 19% Feeder Cattle (100% Steers); 64% Slaughter Cattle (90% Cows, 10% Bulls); 17% Replacement Cattle (32% Stock Cows, 27% Bred Cows, 40% Cow-Calf Pairs). Feeder cattle supply over 600 lbs was 0%.

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tree fmr
Advisor

Re: Floor Talk May 13, 2021

Is there any affect on markets because of river traffic stopped at the I-40 bridge?

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sw363535
Honored Advisor

Re: Floor Talk May 13, 2021

I am not a virtuoso on the subject but at this time of year, and in a year when we are worrying about keeping things fed until Fall, I would think it is not a big issue.  We probably don't have much scheduled to ship unless it might be byproducts like DDG's or ethanol.  Unless it can't be contracted out to private companies.  If its a federal project then it could be decades deciding who's cat needs buttered.  I doubt that any grain over or under the bridge is headed for a feedlot.  But who knows usda may be feeding cattle in New Orleans.

Kind of like the gas on the east coast delaying wheat harvest.  Couldn't happen to a nicer neighborhood.

I think there are some questions that need answering....... 

If there is a crack in the I-40 bridge are they afraid of water escaping the river?  Will it affect an endangered species? (other than ours)

Will it stop mail delivery in Tennessee?

Biggest issue....... will it affect WiFi service west of the Mississippi?

How long has Congress know about this?  And lets pick hours it takes for a Congressman to stand up and say---- there is no money left for infrastructure?  I'm saying 6.  

Will Memphis have to have a mask check before repair work can be planned?

 

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Hobbyfarmer
Honored Advisor

Re: Two things..

 

The amount of corn used in Brazil continues to get larger. In April Brazilian e plants produced 60.33 million gal of ethanol from corn. That is a 15.1% growth compared to last year. 

There are some sugar mills that are retooling to use corn in the Dec through March time frame when sugar cane is not available.

More Brazilian domestic use/competition for corn. Right now 5 corn only plants. But more dual feedstock plants coming on line. Going to get their livestock industry hooked on distillers grains too.

Looks like help from within the competition...

 

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