Floor Talk, May 5, 2020
At the close:
At the close, the July corn futures finished 1 1/2¢ higher at $3.17. Dec. corn futures closed 1/4¢ higher at $3.34 1/4.
July soybean futures closed 3¢ higher at $8.39 1/2. November soybean futures ended 3/4¢ higher at $8.46 3/4.
July wheat futures settled 1 1/4¢ higher at $5.20 1/2.
July soymeal futures closed $1.00 per short ton higher at $289.40. July soy oil futures ended $0.16 cent higher at 26.31¢ per pound.
In the outside markets, the NYMEX crude oil market is $4.09 per barrel higher at $24.48 per barrel, the U.S. dollar is higher, and the Dow Jones Industrials are 377 points higher.
At midsession, the July corn futures are 2¢ higher at $3.17 1/2. Dec. corn futures are 3/4¢ higher at $3.23 1/4.
July soybean futures are 1 3/4¢ higher at $8.38 1/2. November soybean futures are 1¢ higher at $8.46 3/4.
July wheat futures are 1¢ lower at $5.18 1/2.
July soymeal futures are $0.10 per short ton lower at $288.30. July soy oil futures are $0.19 cent higher at 26.34¢ per pound.
In the outside markets, the NYMEX crude oil market is $3.84 per barrel higher at $24.23 per barrel, the U.S. dollar is higher, and the Dow Jones Industrials are 389 points higher.
Jack Scoville, PRICE Futures Group, says that today's trade has been a back and forth affair.
“There's little turnaround Tuesday price action going on. Crude Oil is higher and that is helping, although crude is far from levels to allow ethanol producers to make profits. But, at least it is higher. The economy is starting to open slowly but surely and this can only help in the long run. Still, a lot of questions on the meat processors and their ability to kill and process cattle and hogs and poultry. But, at least moves are going on there. The workers will need to return to get things really going in the sector and no one knows if they will in fact come back. So, we are drifting but holding and that is probably about what we can expect for a while," Scoville says.
In early trading, the July corn futures are 1¢ higher at $3.16. Dec. corn futures are 3/4¢ lower at $3.33 1/4.
July soybean futures are 3 1/4¢ higher at $8.39 1/2. November soybean futures are 1 3/4¢ higher at $8.47 1/2.
July wheat futures are 5 1/4¢ higher at $5.14 1/2.
July soymeal futures are $0.20 per short ton lower at $288.20. July soy oil futures are $0.36 cent higher at 26.51¢ per pound.
In the outside markets, the NYMEX crude oil market is $2.93 per barrel higher at $23.32 per barrel, the U.S. dollar is higher, and the Dow Jones Industrials are 299 points higher.
On Tuesday, private exporters reported to the USDA the following activity:
--Export sales of 378,000 metric tons of soybeans for delivery to China. Of the total, 136,000 metric tons is for delivery during the 2019/2020 marketing year and 242,000 metric tons is for delivery during the 2020/2021 marketing year; and
--Export sales of 109,135 metric tons of corn for delivery to Mexico. Of the total, 45,220 metric tons is for delivery during the 2019/2020 marketing year and 63,915 metric tons is for delivery during the 2020/2021 marketing year.
The marketing year for corn and soybeans began Sept. 1.
Jim Bower, Bower Trading, says that investors are watching the possible frost expected to hit this weekend.
"Corn will be burned back by the cold with most of the crop not likely far enough along to be permanently damaged, but some producers may choose to replant anyway while soybeans are more vulnerable to cold and may suffer permanent damage in some areas," Bower told customers in a daily note.
He noted, "Although corn and soybeans have been planted in many areas that will see significant freezes, recent and coming cooling has and will slow crop emergence and keep the total portion of the crop vulnerable to freezes small compared to the entire U.S. crop as a whole. A few light freezes will occur in the far northwest as well as in Michigan Wednesday with some far northwestern and locations seeing lows in the upper 20s and lower 30s Thursday before freezes expand Friday into next Tuesday with Saturday morning coldest in most areas," Bower told customers in a daily note.
Bower added, "Light freezes will occur as far south as the eastern Dakotas to Minnesota to eastern Iowa and parts of northeastern Missouri through Wisconsin and central and northern Illinois to Michigan, Ohio, and parts of northeastern Kentucky with hard freezes in many areas from eastern North Dakota to Michigan."
What say you?
Re: Floor Talk, May 5, 2020
It’s unfortunate conditions just aren’t what some have been talking up. Nice to hear a mention of the weather on this site normally lately it’s a nonissue for markets. Traders trade negative-10. -14 for ideal conditions then get a bump of frost and rain, so they toss us peasants a penny, classy. I suppose we’re expected to thank them too. Haven’t seen any crops up here, shouldn’t get too damaged just been in the ground in spots for a month with zero emergence. Nothing like farmers getting told what to do then not seeing any results for 45 days, poor guys always trying to please everyone.
Re: Floor Talk, May 5, 2020
The growing point on corn is safe in the freeze areas, beans that are up could be smoked. But so what, get free replant seed and replant next week May 15th? The early bean planting might not pay off as much this year with the coming cold snap resetting the April 20 planting with the May 10th planting.
I know I`m one that`s predicted (hoped for) 8 out of the last zero droughts, but it is dry, we`re getting drips of rain, but a 1/2" or 1" was supposed to`ve been metaphysical certitude last night. They talk about "7 yrs coming into and out of drought" and the last glorious one was 2012, so we`re due. Perhaps that will be a story with legs as we get into summer?
Re: Floor Talk, May 5, 2020
We are doing well. We stay IN our county and OUT of Ford, Finney, and Seward. Last I heard, Meade Co has 11 cases, no hospitalizations, and no deaths. Crops are looking decent, though I hear reports of some areas having quite a bit of drought stress. Seems the wheat did not develop much of a root system this year, so cannot get to the deep moisture. Lots of pivots running on wheat"here". Now that is a real moneymaker. (OR NOT)