Floor Talk May 14, 2021
At the open:
In overnight trading, the July corn futures moved 6 1/2¢ higher at $6.81. September corn futures traded 11¢ higher at $5.94. New crop December corn futures moved 12 1/2¢ higher at $5.70 3/4.
July soybean futures traded 24 3/4¢ higher at $16.08. July soybean futures moved 24 3/4¢ higher at $15.47. New crop November soybean futures moved 13 1/4¢ higher at $14.09 1/4.
July wheat futures moved 18¢ higher at $7.19 1/4.
In the outside markets, the U.S. dollar is lower, and the Dow Jones Industrials futures 147 points higher at 34,085 points.
Bob Linneman, Kluis Advisors, says that the markets were hit with a surprise this week.
“The big slide, Thursday, is primarily being blamed on a news report that barge traffic on the Mississippi was backed up due to engineering issues with a bridge. This headline likely scared a few longs into profit-taking. That quickly escalated as momentum sellers (and probably also algorithm trading systems) jumped on the selling bandwagon,” Linneman stated in a daily note to customers.
Linneman added, "Weather forecasts for the dry section of Brazil are suggesting possible rains just over a week from now. Is it too late? Some rain is better than none, but traders will want to see rainfall hitting the ground before they get too excited about changing opinion about the crop.