Floor Talk November 11
At the close:
At the close, the December corn futures settled 3 1/4¢ lower at $3.40 1/4, while March futures ended 3¢ lower at $3.49 per bushel. January soybean futures finished 12¢ lower at $9.86, while March soybean futures closed 12¢ lower at $9.94 1/2. December wheat futures closed 1 3/4¢ lower at $4.03. December soy meal futures finished $3.60 short ton lower at $307.80. December soy oil futures ended $0.33 lower at 34.40¢ per pound. In the outside markets, the Brent crude oil market is $1.21 per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 19 points higher.
At mid-session, the December corn futures are 3 3/4¢ lower at $3.39, while March futures are 3 1/2¢ lower at $3.48 per bushel. January soybean futures are 17 1/4¢ lower at $9.80, while March soybean futures are 17 1/2¢ lower at $9.89. December wheat futures are 2¢ lower at $4.02. December soy meal futures are $5.00 short ton lower at $306.40. December soy oil futures are $0.47 lower at 34.30¢ per pound. In the outside markets, the Brent crude oil market is $1.40 per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 33 points lower.
DeAnne Hawthorne-Lahre, StatFutures co-owner and trader, says the soybean market had a bomb dropped on it.
“Yes, they dropped the big one on beans today. This week’s WASDE Report was bearish, with an astronomical yield. But, post election saw a big rebalancing in the markets, mostly led by copper. Copper came off this morning and the whole structure collapsed. Also seeing some indications of rotations in financials, tech, and treasuries. A boatload of money was out of position for the Trump win. As last comment, plenty of grains and soybean supplies are out there,” she says.
Hawthorne-Lahre adds, “Also the U.S. Dollar is continuing a move up, which I continue to think is justified. Brazil’s Real also got torched the past couple of days, adding to bean downward pressure.”
Corn Sales Surge:
Corn export sales are outperforming, despite being overshadowed by the great performance of soybean sales, FC Stone pointed out to customers Friday.
This week, corn sales reached 48.6 million bushels; that was down from 58.0 mbu the previous week but twice as high as a year ago.
In addition, corn sales through two months of the 2016/17 marketing season stand at 1023.2 million bushels, the biggest sales pace since 2007, and already 481 million bushels ahead of last year, with the USDA steady at a 327-mbu entire-year corn export rise for 2016/17.
In early trading, the December corn futures are 3¢ lower at $3.40, while March futures are 3 1/4¢ lower at $3.48 per bushel. November soybean futures are 6¢ lower at $9.92, while January soybean futures are 6¢ lower at $10.00. December wheat futures are 1/4¢ higher at $4.05. December soy meal futures are $2.50 short ton lower at $308.90. December soy oil futures are $0.23 lower at 34.54¢ per pound. In the outside markets, the Brent crude oil market is $1.11 per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 90 points lower.
Happy Veterans Day! Soybean futures were 9 cents higher overnight after Brazil lowered its production outlook and the USDA reported purchases from US supplies on Thursday. Corn was pretty much unchanged overnight, as was wheat. Export sales were down week-over-week but were still above a million tons for both crops. Unknown buyers canceled a purchase of 900,000 tons of beans, which hurt the numbers. The weather looks pretty benign today with a freeze warning in northwest Missouri and cold weather in Wisconsin -- but isn't it always cold in Wisconsin this time of year?
Here's what happened overnight:
Brent Crude Oil = 0.1% lower.
West Texas Intermediate Crude Oil = 0.8% lower.
Dollar = up 0.6%.
Wall Street = U.S. stock futures higher in overnight trading.
World Markets = Global stocks rise as investors look for bargains after election selloff.
Re: Floor Talk November 11
From the USDA: Reductions were reported for unknown destinations (903,800 MT) and Malaysia (1,500 MT).
What frustrates me is that they don't say who canceled their order. I'm guessing it was China, but who really knows since, despite this wonderful transparency (and I say that half-joking, but the USDA is actually much better than any other country's ag department at reporting data) they're allowed to not name the country doing the buying/canceling.
Re: Floor Talk November 11
Over the years most data collection across the board has seen a huge increase in analysis without much improvement in data sourcing. similar to election Polling.