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marketeye
Veteran Advisor

Floor Talk, May 26, 2020

At the close:

At the close, the July corn futures finished 1¢ higher at $3.19. Dec. corn futures closed 1 1/4¢ higher at $3.34.

July soybean futures finished 13 1/2¢ higher at $8.47. November soybean futures closed 10 3/4¢ higher at $8.55.

July wheat futures closed 2¢ lower at $5.06 1/4.

July soymeal futures ended $0.20 per short ton higher at $283.90.

 July soy oil futures finished 0.63 cent higher at 27.27¢ per pound.



In the outside markets, the NYMEX crude oil market is $0.91 per barrel higher at $34.16 per barrel, the U.S. dollar is lower, and the Dow Jones Industrials are 652 points higher.

Mike

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At midsession:

At midsession, the July corn futures are 1 1/4¢ higher at $3.19. Dec. corn futures are 1 1/4¢ higher at $3.34.

July soybean futures are 11 1/2¢ higher at $8.44 3/4. November soybean futures are 9 3/4¢ higher at $8.54 3/4.

July wheat futures are 1¢ higher at $5.09 1/4.

July soymeal futures are $0.40 per short ton higher at $284.50.

 July soy oil futures are 0.55 cent higher at 27.19¢ per pound.



In the outside markets, the NYMEX crude oil market is $0.41 per barrel higher at $33.66 per barrel, the U.S. dollar is lower, and the Dow Jones Industrials are 579 points higher.

Mike

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At the open:

In early trading, the July corn futures are 2 3/4¢ higher at $3.20 3/4. Dec. corn futures are 2 1/4¢ higher at $3.35.

July soybean futures are 6 1/4¢ higher at $8.39 1/2. November soybean futures are 5 1/4¢ higher at $8.49 3/4.

July wheat futures are 1/2¢ higher at $5.09 1/4.


July soymeal futures are $1.40 per short ton higher at $285.50.

July soy oil futures are 0.37 cent higher at 27.01¢ per pound.



In the outside markets, the NYMEX crude oil market is $0.97 per barrel higher at $34.22 per barrel, the U.S. dollar is lower, and the Dow Jones Industrials are 571 points higher.

On Tuesday, private exporters reported to the USDA the following activity:

--Export sales of 264,000 metric tons of soybeans for delivery to China. Of the total, 66,000 metric tons is for delivery during the 2019/2020 marketing year and 198,000 metric tons is for delivery during the 2020/2021 marketing year; and

--Export sales of 216,000 metric tons of soybean meal for delivery to unknown destinations during the 2019/2020 marketing year.

The marketing year for soybeans began Sept. 1; soybean meal began Oct. 1.

Al Kluis, Kluis Advisors, says that investors will be watching the U.S. gasoline consumption data and the USDA's estimate of planting progress, for price direction.

"The grain markets closed mostly lower on Friday in a choppy day of trade. The weather over the long holiday weekend was close to the forecasts on Friday," Kluis told customers in a daily note. The USDA Crop Progress report today will tell us how much corn was planted in North and South Dakota over the last week. Total US corn planted acreage may fall below 95 million acres as many northern Corn Belt and Delta farmers throw in the towel and take the Prevent Plant alternative in 2020."

Kluis added, "There is a lot of pent up demand to travel. That plus the normal seasonal increase in driving will help increase gasoline and ethanol demand this year. Over the next few weeks, gasoline demand may rebound up to 85% to 90% of the consumption in 2019."

 

Mike

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3 Replies
rickgthf
Senior Advisor

Re: Did I miss something, why are northern corn belt farmers..

Did I miss something?  Why are northern corn belt farmers throwing in the towel?

If anything I would be more concerned about the price with Dec corn at $3.34 at this point in the season.  We better hope we get a weather rally and then be smart enough to sell it because otherwise things could get ugly come fall.

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illinifarmer
Advisor

Re: Did I miss something, why are northern corn belt farmers..

I believe it’s due to the delayed planting of corn.  There hasn’t been much opportunity with the weather to get seeds in the ground up there.  Here in Illinois we’re still planting corn and replanting for the second time strictly due to field conditions and weather.  Very few guys even started on soybeans. Insurance date for county is 06/05 so in a week or so no coverage.  After last year we planted corn for the first time in June  to be honest it was a huge mistake.  Still combined until Christmas at 20+ %.  On top of all seed salesmen and analysts assuring us of 5-6$ corn last fall. Terrible test weights lots of drying and lots of poor stand.  Major losses all around.  PP acres all over ended up trimming losses far less than guys that actually farmed.  Most who experienced any scenario similar will never attempt that again.  Illinois has had more rain this year in May than last year when we broke the record again.  Dakota’s have had a rough last two months I’m assuming it’s a clock running out of time issue, like here.  Couple weeks left to salvage a soybean crop however with these current markets it’s going to come down to PP payments to make a decision for some.  It’s sad in some spots out here just nothing but weeds in unplanted fields from two years ago with plenty of water and soil damage.  Good luck to the fellas up north, unfortunately we have major losses of farming revenue of our own.... Off topic has anyone talked much about these price gouging grocery stores?  Approaching 2012 prices locally with farmers getting less than half for our products as 12”.  10$ a lb for ground beef is not ok even if I’m getting 7$ for corn.  It’s ridiculous.  These markets have to adjust, that’s the biggest problem in grains right now.  2020 and they’re trading early 90’s money. Wake up CBOT 

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sw363535
Honored Advisor

Re: Did I miss something, why are northern corn belt farmers..

Well its 2 am and Im finally reading the floor talk....... to check the 2 commodities we care about .....

Soybeans are up 13 on sales to china........ It seems so hard to say......... Al just could not bring himself to say it at all...talked about projected corn acres and friday's activity...  probably a tear in his eye.

Corn is up or down 1

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Well feeder cattle were up the limit but Marketing doesn't mention them.......... 

We all stay busy doing so little these days.   --- or cattle folks are still social distancing.   Wake up guys the siesta is over.  Masks aren''t fooling anybody now.

There are a few commodities worth owning this week

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