Floor Talk, May 22, 2020
Folks, I was off yesterday. Here are today's markets.
At midday, the July corn futures are 1 1/4¢ lower at $3.16 1/4. Dec. corn futures are 2¢ lower at $3.31 1/4.
July soybean futures are 2 1/2¢ lower at $8.32 1/4. November soybean futures are 2¢ lower at $8.43 1/2.
July wheat futures are 6 3/4¢ lower at $5.09 1/4.
July soymeal futures are $1.40 per short ton higher at $283.90. July soy oil futures are 0.46 cent lower at 26.65¢ per pound.
In the outside markets, the NYMEX crude oil market is $1.09 per barrel lower at $32.83 per barrel, the U.S. dollar is higher, and the Dow Jones Industrials are 89 points lower.
At the open:
In early trading, the July corn futures are 1 1/4¢ lower at $3.16 1/4. Dec. corn futures are 1 3/4¢ lower at $3.31 1/4.
July soybean futures are 3 1/2¢ lower at $8.31 1/4. November soybean futures are 2 3/4¢ higher at $8.42 3/4.
July wheat futures are 8 3/4¢ lower at $5.07 1/4.
July soymeal futures are $0.40 per short ton lower at $282.10. July soy oil futures are 0.24 cent lower at 26.87¢ per pound.
In the outside markets, the NYMEX crude oil market is $1.14 per barrel lower at $32.78 per barrel, the U.S. dollar is higher, and the Dow Jones Industrials are 101 points lower.
Al Kluis, Kluis Advisors, says that the markets are watching the technical signals of corn, soybean and wheat.
"A close below $8.29 in July soybeans would be breaking below the prior three-week low. This would give momentum to the bears for next week. Spring wheat was unable to find new buyers after prices pushed to the highest level in a month on Thursday. The corn chart is slowly moving up and to the right on the chart, which is a positive trend. However, a 13¢ range for the month of May is unlikely to attract many momentum traders to the bull camp. RBOB gasoline and ethanol futures moved over the $1.00 mark this week. Analysts are hopeful we will start seeing improvement in weekly demand numbers," Kluis told customers in a daily note.
Kluis added, "The funds were holding a very sizable short position in corn and a record short position in Minneapolis spring wheat in the Commitments of Traders report last Friday. Spring wheat has a reason for short-covering to occur. However, the story for corn has not yet changed enough to trigger short-covering."