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marketeye
Veteran Advisor

Floor Talk, May 27, 2020

At 9am:

Full story: Corn is oversold, watch for short-covering to provide price spark

 

Mike

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At 8:45am:

In early trading, the July corn futures are 2 1/4¢ higher at $3.21 1/4. Dec. corn futures are 1 1/4¢ higher at $3.35 1/2.

July soybean futures are 3¢ higher at $8.50. November soybean futures are 3¢ higher at $8.58.

July wheat futures are 1 1/4¢ higher at $5.08.

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

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

In the outside markets, the NYMEX crude oil market is $0.79 per barrel lower at $33.56 per barrel, the U.S. dollar is lower, and the Dow Jones Industrials are 337 points higher.
On Wednesday, private exporters reported to the USDA changes in destination of 138,000 metric tons of soybean cake and meal from unknown destinations to the Philippines during the 2019/2020 marketing year.

The marketing year for soybean cake and meal began Oct. 1.

The USDA Crop Progress report on Monday showed corn planting at 88% complete. This compares to 80% last week and just 55% last year. Soybean planting is 65% complete compared to 53% last week. Spring wheat planting is reported at 81%, which is 9 percentage points behind the five-year average.

Al Kluis, Kluis Advisors, says that investors will need to digest a drop in corn acres.

"The wet weather over the last two weeks in North and South Dakota will result in 2-3 million acre reduction in planted corn acres in those two states. I now expect total corn acres will drop to about 94 million acres of corn, which is 3 million acres below the USDA projection from January," Kluis told customers in a daily note.

Kluis added, "We will be watching the weather in North Dakota this week. North Dakota plants about 50% of the US Hard Red Spring wheat crop. However, yesterday's USDA Crop Progress report showed only 70% of their HRS spring wheat has been planted. This signals that total HRS spring wheat planted acres may be 1 million acres (8%) below the USDA January Prospective Plantings report."

 

Mike

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8 Replies
rawhide
Advisor

Re: Floor Talk, May 27, 2020

doing our part to improve corn prices where i live.  There is only one field planted in my township and it will probably be the only one

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r3020
Senior Advisor

Re: Floor Talk, May 27, 2020

I see the clouds down there every day Rawhide. We got .6 this morning. Done with corn. About 40% on beans.

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rawhide
Advisor

Re: Floor Talk, May 27, 2020

Probably had 5 inches the last 2 weeks

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rawhide
Advisor

Re: Floor Talk, May 27, 2020

probably had 5 inches the last 2 weeks

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rickgthf
Senior Advisor

Re: You guys are getting ahead of yourselves.

Last year with all the rain here, we didn't get planted until well into June but we had one of our best crops ever. 

  Why?  Because when the dry finally came, the soil profile was full and let the crop keep growing through the dry spell in July & August. 

  My thinking is, if you got a market for corn plant it instead of beans.  The way international politics are going, opportunities to sell beans will be limited for some time to come.

  Besides, with the advent of climate change, you can almost grow full-season corn in North Dakota now, late-planted or not,

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r3020
Senior Advisor

Re: You guys are getting ahead of yourselves.

And to think 97% of scientist said climate change was going to cause famine.

timetippingpt
Honored Advisor

Re: You guys are getting ahead of yourselves.

3020, just drove Indy, to Cincinnati, to Dayton, and back yesterday. I was pretty surprised how terrible the crops look the whole way, probably 50-60% planted at the most and water standing everywhere. Despite last year's anomoly that Rick alluded too, planting date matters. Sorry to see it looking so rough for you guys.

Do you think anyone will go PP again?

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r3020
Senior Advisor

Re: You guys are getting ahead of yourselves.

Hard to say. The weather can be a fickle thing. 4-5 days of sunshine can sure change your out look on things. PP is not a money maker.

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