Floor Talk November 13
FYI: November soybean futures went off of the board today at $8.59. The FSA released their updated soybean acreage numbers today. They put the planted + failed acreage number at 81.277 million acres. The latest NASS numbers of planted acres is 83.205 million.
At the close:
At the close, the Dec. corn futures settled 3 3/4 cents lower at $3.58. January soybean futures finished 7 3/4 cents lower at $8.55. Dec. wheat futures ended 2 1/4 cents lower at $4.95 3/4. Dec. soymeal futures closed $2.60 per short ton lower at $288.80. Dec. soyoil futures settled $0.40 lower at $27.04. In the outside markets, the Crude oil market is $0.85 lower per barrel, the U.S. dollar is higher, and the Dow Jones Industrials are 190 points lower.
At mid-session, the Dec. corn futures are trading 2 1/2 cents lower at $3.59. January soybean futures are trading 6 1/2 cents lower at $8.56. Dec. wheat futures are trading 5 1/4 cents lower at $4.92. Dec. soymeal futures are $1.90 per short ton lower at $289.50. Dec. soyoil futures are trading $0.36 lower at $27.08. In the outside markets, the Crude oil market is $0.55 lower per barrel, the U.S. dollar is higher, and the Dow Jones Industrials are 88 points lower.
Jason Ward, Director of Grains and Energy at Northstar Commodity says that good rain chances for Brazil next week is weighing on the markets.
“I talked to my sources this morning and Brazil’s weather and Argentina’s elections have the market’s attention. Probably the most concerning factor for soybeans is that the opposition in Argentina is leading in the polls by 8 points and if elected (Nov 22nd) vows to change currency controls which would devalue Argentine peso triggering selling of large quantities of unsold product that has been in baggies in Argentina for up to 2 years. My sources estimate 10 MMT or 360 million bushels of product could/would move quickly,” Ward says.
This is a black cloud hanging over an already over supplied market, then on top of that you had fairly dismal corn/wheat sales in the weekly report.
Ward adds, “I agree that we are seeing strong soybean exports, but it is the lone bright spot. We sold 47.7 mil/bu and need to average 15 mil/bu/week to reach USDA’s target, but for corn it has been 11 consecutive weeks where we have been BELOW average of what we need to sell.”
The U.S. Dollar being higher by 55 points, today, doesn’t help matters. So, we all go home after a brutal week in the commodity sector,” Ward says.
Private exporters reported to the U.S. Department of Agriculture export sales of 116,000 metric tons of grain sorghum for delivery to unknown destinations during the 2015/2016 marketing year.
The marketing year for grain sorghum began Sept. 1.
At the open:
At the open, the Dec. corn futures are trading 1 cents lower at $3.60. January soybean futures are trading 5 cents lower at $8.57. Dec. wheat futures are trading 2 cents lower at $4.95. Dec. soymeal futures are $1.50 per short ton lower at $289.90. Dec. soyoil futures are trading $0.24 lower at $27.20. In the outside markets, the Crude oil market is $0.28 higher per barrel, the U.S. dollar is higher, and the Dow Jones Industrials are 39 points lower.
For the week:
Corn is down 12¢, Chi Wheat is down 25¢, soybeans down 9¢.
USDA releases strong Weekly Export Sales Friday:
Wheat= 236,670 mt vs. the trade’s expectations of 250,000-500,000 mt.
Corn= 640,600 mt vs. the trade’s expectations of 350,000-700,000 mt.
Soybeans= 1.312 million mt vs. the trade’s expectations of 500,000-1,200,000 mt.
Soybean meal= 215,100 mt vs. the trade’s expectations of 150,000-350,000 mt.
Early calls: Corn 1-2 cents lower, soybeans 4-6 cents lower and wheat 1-2 cents higher.
Overnight grain, soybean markets = Trading mostly lower.
Brent Crude Oil = $0.61 higher.
Wall Street = Seen lower, with eyes on retail sales and earnings.
World Markets = Europe stocks were lower, Asia/Pacific stocks were lower.
More in a minute,