Floor Talk May 2

[giolucas]

What the Hec?????What is going on??? Anything.  We broke hard. WHY?

[Farmerjoe79]

Theres going to be some buying today.

[Hobbyfarmer]

When is somebody going to buy something a seller doesn't have in inventory? Just because of the belief that it is out there and I can source it. The Brazilians seem to be up against that wall now. 

Is this flux in today's market, the traders way of trying to shake some loose?  Just how much is in the commercials hands? How much in farmers hands and who really knows what is left out here in the country?  My feeling is "less than believed".

We are 50 days away for the "normal" drop off of old crop prices in anticipation of new crop supplies. Everything else was early this year are we early on the summer break too? Is everybody going to sub wheat for corn? There is a practical limit to livestock performance with  an all wheat diet.

[bkadds]

Do not know if he does or not, but I take into account what he says.  However, rarely do I follow his advice.  I have noticed though that as soon as he sends one signal out the market almost always takes a down turn that day.  Must be some following his advice.  The market is acting like it did last week when we had sales and yet the market went down.  Always seems like there is some bs reason the traders find to short the market.

[Buckley_HF]

Hobby, you give the traders to much credit. They aren't trying to shake anything loose. Their computers are set to liquidate today so we go down. I 100% agree with you about the idea there may not be the "expected" inventory out there to source grain for sales in the next couple of months. Corn basis at gulf was up another 5 cents this am. I have a feeling demand may overwhelm our current old crop supply situation and my feeling is the boys in Chicago will be the LAST to know about it.

[Buckley_HF]

The pit boys must still have some pull up there in CHI, new rumor today is USDA may move their production reports to 9:30 to accommodate pit trade.

[Hobbyfarmer]

Buckley: I wasn't very clear, my fault. I lump the commercials in with the "traders" too often as it seems to be us farmers agaist them and the Pure traders.

The commercials have been selling the old crop like gang busters and I think there must be a reason the world is still buying at this pace and this price. I smell demand, and shortages. I am wondering if in some cases the "customer" has out of condition supplies at home and knows it and is replacing it. India is famous for that problem. There are more mouths to feed every day. We are still 90 days away for anything but a wheat harvest.

[vrbuck]

http://community.agriculture.com/t5/Marketing/what-about-the-Chinese-businesses/m-p/195763#M17710

[Buckley_HF]

I'm sorry buck, did u have a point with that link? Because the merc raised margin requirements causing one day of liquidation u come on here and post what?