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Veteran Advisor

Floor Talk May 30

At the close:

The July futures corn contract settled 11 cents lower at $6.54. New-crop Dec. futures finished 3 cents lower at $5.62. The July soybean futures contract ended 6 cents lower at $14.95, new-crop Nov. soybeans finished 1 cent higher at $12.89. July wheat futures finished 4 cents lower at $6.98 per bushel. The July soymeal futures closed $3.50 per short ton lower at $440.80. The July soyoil futures ended $0.05 lower at $48.58.
In the outside markets, the NYMEX crude oil is $0.21 per barrel higher, the dollar is lower and the Dow Jones Industrials are 88 points higher.

 

One analyst wraps up today's lower trade like this: "It’s the last two days of the month and funds can pay bonuses on profitable trades if taken before month end. So expect rallies to be sold. Under pinning the breaks is talk of extreme rain in the Midwest grain belt thru Sunday, especially the western belt. This continues to bring on talk of corn acres going to beans as corn preferred planting dates expire."

 

Mike

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At mid-session:

The July futures corn contract is trading 12 cents lower at $6.52. New-crop Dec. futures are trading 7 cents lower at $5.58. The July soybean futures contract is trading 5 cents lower at $14.96, new-crop Nov. soybeans are trading 3 cents lower at $12.85. July wheat futures are trading 11cents lower at $6.91 per bushel. The July soymeal futures are trading $2.40 per short ton lower at $441.90. The July soyoil futures are trading $0.25 lower at $48.38.
In the outside markets, the NYMEX crude oil is $0.21 per barrel higher, the dollar is lower and the Dow Jones Industrials are 81 points higher.

 

Mike

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With the exception of soybeans coming off the mark, the farm markets are trading lower by double-digits. Meanwhile, here is the latest from the Renewable Fuels Association. Essentially, in the last week, the U.S. produced less ethanol and even imported some.

 

According to EIA data, ethanol production averaged 863,000 barrels per day (b/d) — or 36.25 million gallons daily. That is down 12,000 b/d from the week before. The four-week average for ethanol production stood at 860,000 b/d for an annualized rate of 13.18 billion gallons.

Stocks of ethanol stood at 16.0 million barrels. That is a 0.8% decrease from last week and the fifth consecutive weekly decline.

Imports of ethanol were 27,000 b/d, marking the first time in the last five weeks that the United States imported ethanol, according to the RFA press release Thursday.

 

Mike

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At 9am:

--USDA announces that China bought 120,000 tons of U.S. soybeans Thursday. Didn't they just cancel a shipment yesterday?

 

Mike

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At the open:

The July futures corn contract opened 1 cent lower at $6.64. New-crop Dec. futures opened 2 cents lower at $5.53. The July soybean futures contract opened 9 cents lower at $14.92, new-crop Nov. soybeans opened 4 cents lower at $12.84. July wheat futures opened 8 cents lower at $6.94 per bushel. The July soymeal futures opened $3.20 per short ton lower at $441.10. The July soyoil futures opened $0.01 lower at $48.63.
In the outside markets, the NYMEX crude oil is $0.61 per barrel lower, the dollar is lower and the Dow Jones Industrials are 20 points lower.

 

Mike

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Note: Due to the Memorial Day Holiday, the USDA's Weekly Export Sales will not be released until Friday morning.

 

 

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At 7am:

 

--Japan buys 117,035 tons of milling wheat

--Japan suspends imports of U.S. wheat, due to the GMO trait case found on an Oregon farm.

--S. Korea buys 68,000 tons of corn from ADM, according to the Dow Jones Newswire.

 

 

Mike

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At 6:45am:

 

Early calls:  Corn is seen 1-2 cents lower (old-crop), soybeans 3-5 cents lower (old-crop), and wheat 5-7 cents lower. Meanwhile, new-crop corn 2-4 cents lower and soybeans are seen 3-5 cents lower.

Trackers:
Overnight grain, soybean markets=Trading lower.
Crude Oil=$0.36 per barrel lower
Dollar=Lower.
Wall Street=Seen higher, ahead of U.S. Jobless Claims and 1st Quarter Growth Reports.

World=Asia/Pacific stocks were lower and Europe's stocks are higher.

 

 

 

More in a minute,

 

Mike

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9 Replies
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Veteran Advisor

Re: Floor Talk May 30

little trip down memory lane this morning.

 

In 1993 i met my wife who was going to college back in Michigan.  When she left at the end of the year and returned home for the summer. she had to much stuff to get back in her car. SO I left two weeks later in my pick up and brought her out the rest of her stuff. 

 

The thing I remeber is that this would have been the first week of June. Corn in grundy county and Hardin county was closing the row already.

 

Fast forward to this year. not even close to the same thing is going on.  Any comparisons to 93 are trully false.

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Veteran Advisor

Re: Floor Talk May 30

jrsiajdranch,

 

Had some folks tell me, yesterday, in a trip from central Iowa to Minnesota, they were shocked as to how much water was sitting in fields north of Ames. And, to boot, a lot of fields were not even planted. They had to drive for hours to see any corn spiking out of the ground.

 

Mike

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Frequent Contributor

Re: Floor Talk May 30

Made a trip from SW Minn to the Cities yesterday.(I-90 to I-35)  From about Blue Earth on was amazed to find the same thing.  Only a small amount of fields could be rowed. (less than 10%)  Lots of ponding and plenty of unplanted fields.  Saw NH3 applicators sitting in unplanted fields.  We are extremely lucky in our area and farms to only have less than 20% beans to put in and corn up and easily rowable at MPH

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Senior Advisor

Re: Floor Talk May 30

Well, there may be a lot of silage this year to replace the hay that is not going to be put up timely if the corn develops late and we have an early frost.

What are you guys doing?  Are you buying corn so you'll have some to sell when prices go out of sight?

Let's suppose that from here on out we had a normal year.  Nothing terrible, nothing great.  Just what you'd expect if you didn't know any better.  What would you raise for corn if that happened?  That is exactly what the CBOT is betting on.  If you think they are wrong, you should get on the other side of them.

Oh, that's right, you have crop insurance.

On the larger scale, the pond out our back door may not affect national tend line all that much.  We could right now be at the start of a nice trend of seasonal weather that will have corn growing like weeds.  I'd like to think so.

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Veteran Advisor

Re: Floor Talk May 30

Does anyone but me see some irony in Japan making a big fuss over some gmo wheat?  Their whole country is radioactive!!!!!!!!!

 

I don't think that wheat is the big problem.  Is it just a bargaining chip for something else they want from the US?

 

 

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Advisor

Re: Floor Talk May 30

Who they gonna call when China and North Korea act up?  That is what I thought!  Take our wheat.

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Honored Advisor

Re: Floor Talk May 30

Always has been, --------- great post

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Veteran Contributor

Re: Floor Talk May 30

Ask the cattle guys about food safety and Japan.   Took five years for them to approve cattle over 20 months.   Whatever happens with wheat it will take much more time than the market anticipates. 

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Honored Advisor

Re: Floor Talk May 30

Not if they get hungry.......

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