Floor Talk May 21
At the close:
At the close, the July corn futures finished 1/4¢ higher at $4.02. December futures finished 3/4¢ higher at $4.21. July soybean futures settled 26 3/4¢ higher at $10.25 1/4. November soybean futures closed 25 1/2¢ higher at $10.33 3/4. July wheat futures ended 11¢ lower at $5.07 1/4. July soy meal futures closed $2.80 per short ton higher at $379.10. July soy oil futures ended 0.44 higher at 31.42¢ per pound. In the outside markets, the NYMEX crude oil market is $0.91 higher, the U.S. dollar is higher, and the Dow Jones Industrials are 291 points higher.
At mid-session, the July corn futures are 1 1/2¢ higher at $4.04. December futures 1 1/4¢ higher at $4.21. July soybean futures are 23 1/4¢ higher at $10.21. November soybean futures are 22 1/4¢ higher at $10.30. July wheat futures are 8 1/2¢ lower at $5.09. July soy meal futures are $2.40 per short ton higher at $378.70. July soy oil futures are 0.24 higher at 31.22¢ per pound. In the outside markets, the NYMEX crude oil market is $0.69 higher, the U.S. dollar is lower, and the Dow Jones Industrials are 302 points higher.
Jason Ward, Managing Director of Northstar Commodity, says that the biggest rallying factor today is a “euphoric” response to the U.S.-China trade war aversion.
“There was so much liquidation in the soybean market and buyers waiting on the sidelines “just in case” of the tariff going into effect, this is now freeing people up to buy,” Ward says.
He adds, “I also think the ‘big bust’ of a rain system over the weekend takes a little acreage pressure off soybeans as much more corn was able to get planted than expected. It’s why corn was muted in its response today and actually traded lower, but even now corn has come back.”
There is a lot of bullish ag fundamentals and more usage pledged by China that entices buyers, he says.
“Now let’s see some action, because frankly, China has promised things in the past only to come up short on those promises, just so this isn’t another one of those times,” Ward says.
He adds, “For today though, I am one thankful trader that a trade war has been averted so far.”
In early trading, the July corn futures are 1/4¢ higher at $4.02. December futures 1/4¢ higher at $4.20. July soybean futures are 16¢ higher at $10.14. November soybean futures are 15¢ higher at $10.23. July wheat futures are 9 1/2¢ lower at $5.08. July soy meal futures are $0.70 per short ton higher at $377.00. July soy oil futures are 0.29 higher at 31.27¢ per pound. In the outside markets, the NYMEX crude oil market is $0.34 higher, the U.S. dollar is higher, and the Dow Jones Industrials are 299 points higher.
Soybeans jumped in overnight trading amid cooling trade tensions between the US and China. Treasury Secretary Mnuchin said the trade spat between the countries were "on hold" as threats of tariffs will end. That's good news for items that were on the list of proposed tariffs on US goods including soybeans and pork. Beans were up 18 cents overnight, corn gained about 3 cents and wheat futures were up 3 cents. Money managers, meanwhile, lowered their bullish bets on corn, beans and hard-red winter wheat last week. In weather news, some flooding is expected in central Missouri today after up to 6 inches of rain fell in the past 48 hours. Check out all the details in today's 3 Big Things.
West Texas Intermediate = up 0.1%.
Brent Crude = down 0.4%
Dollar = up 0.2%.
Wall Street = U.S. stock lower pre-market.
World Markets = Global stocks mixed overnight.