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marketeye
Veteran Advisor

Floor Talk May 28

At the close:

At the close, the July corn futures finished 4 cents higher at $3.53 1/2 per bushel. The Dec corn futures ended 3 1/4 cents higher at $3.70 per bushel.
July soybean futures closed 1 cents lower at $9.26. Nov. soybean futures finished 4 1/2 cents lower at $9.02.

July wheat futures closed 1 cents higher at $4.88. 

July soymeal futures finished $3.30 per short ton lower at $304.80. July soyoil futures finished $0.33 higher at $32.06.

In the outside markets, the Brent Crude oil market is $0.32 lower per barrel, the U.S. dollar is lower, and the Dow Jones Industrials are 38 points lower.

Mike

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At mid-session:

At mid-session, the July corn futures are trading 3 1/2 cents higher at $3.53 per bushel. The Dec corn futures are 2 3/4 cents higher at $3.69 per bushel.
July soybean futures are trading 1 1/4 cents lower at $9.25. Nov. soybean futures are trading 3 1/4 cents lower at $9.03.

July wheat futures are trading 1 1/2 cents higher at $4.89. 

July soymeal futures are trading $0.50 per short ton higher at $308.60. July soyoil futures are trading $0.23 higher at $31.96 .

In the outside markets, the Brent Crude oil market is $0.40 lower per barrel, the U.S. dollar is lower, and the Dow Jones Industrials are 86 points lower.

Jack Scoville, The PRICE Futures Group’s Senior Market Analyst, says that wheat and corn prices are getting support from the flooding rains and also on ideas the crops are oversold.  “It seems to be that speculative short covering is underpinning the grains, as much as anything.  The soybean market is trading both sides of unchanged, waiting for news.  Some support for commodities, in general, coming from the US Dollar not flying away.  Volumes are good today, lots of spec action, not so much commercial action.  The hedge side is quiet,” Scoville says.

Mike North, President of Commodity Risk Management Group, says that concerns over flat or declining Russian wheat yields, together with the softer dollar has wheat reaching for higher ground. 
“However, its reach hasn't taken it far.  Chicago wheat is the only market with a solid higher trade, while KC and Minneapolis teeter totter on prices either side of yesterday's settlement,” North says.
Corn is finding some minor profit taking, after yesterday's move to contract lows, North says.  “Soybeans are weaker as forecasts for rain into next week raises some thoughts for added soybean acres.  The market is lacking much of the volume witnessed in yesterday’s trade. So, vacuum trades have been noted earlier in the session.”

Alan Brugler, President of Brugler Marketing & Management LLC, says that soybeans are down due to meal dropping $5.00 per ton, pressuring product value. 
“I thought maybe something had been resolved in Argentina, but the strike continues there at crush plants, with truckers also unable to unload beans at several export terminals.  The union thinks they have an agreement at 36% wage hike, but the government is pushing both sides to announce only a 27% hike (to keep in line with other recent union deals and cap domestic inflation),” Brugler says.
Brugler adds, “I think corn and wheat are mostly end of month profit taking by the shorts.”

.

Mike

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At 10:45am:

Ethanol production numbers are up, for the week's production, according to a Renewable Fuels Association press release.

"According to EIA data, ethanol production averaged 969,000 barrels per day (b/d)—or 40.70 million gallons daily. That is up 11,000 b/d from the week before and the highest rate of output in 17 weeks. The four-week average for ethanol production stood at 932,000 b/d for an annualized rate of 14.29 billion gallons.

Stocks of ethanol stood at 20.1 million barrels. That is a 1.6% decrease from last week and the lowest since the week ended 1/2/2015."

 

Mike

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At the open:

At the open, the July corn futures are trading 1 cents lower at $3.48 per bushel. The Dec corn futures are 1 1/4 cents lower at $3.65 per bushel.
July soybean futures are trading 1 cent higher at $9.28. Nov. soybean futures are trading 2 1/4 cents lower at $9.04.

July wheat futures are trading 2 1/4 cents lower at $4.85 1/2.

July soymeal futures are trading $0.50 per short ton higher at $308.60. 

In the outside markets, the Brent Crude oil market is $0.48 lower per barrel, the U.S. dollar is higher, and the Dow Jones Industrials are 50 points lower.

Mike

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At 7:15am:

 

Early calls: Corn 2-4 cents higher, soybeans 2-4 cents higher, and wheat 3-5 cents higher.

 

Trackers:
Overnight grain, soybean markets = Trading higher.
Brent Crude Oil = $0.07 higher.
Dollar =Higher. 
Wall Street = Seen lower, with the Greece crisis in focus.

World Markets = Europe stocks were lower, Asia/Pacific stocks were mostly higher.

 

 

 

More in a minute,

 

Mike

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2 Replies
daniel looker
Frequent Contributor

Re: Floor Talk May 28

Mike,

EPA's latest on the ethanol blending mandate is expected soon. The biofuels industry is still nervous about it. I'll keep you posted.

--Dan
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marketeye
Veteran Advisor

Re: Floor Talk May 28

Dan,

 

This news has been long awaited for, in the grain trade circles. It should be very interesting to see how the market reacts to this ruling. Of course, the final ruling won't come until the fall, right?

 

Mike

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