Floor Talk November 2
At the close:
At the close, the December corn futures finished 2 1/4¢ lower at $3.46 3/4, while March futures settled 2¢ lower at $3.55 3/4 per bushel. November soybean futures finished 7 1/2¢ lower at $9.76 3/4, while January soybean futures closed 6 1/2¢ lower at $9.86 3/4. December wheat futures finished 3 1/2¢ higher at $4.17 1/2. December soy meal futures closed $2.70 short ton lower at $306.80. December soy oil futures ended $0.11 higher at 34.96¢ per pound. In the outside markets, the Brent crude oil market is $1.49 per barrel lower, the U.S. dollar is lower, and the Dow Jones Industrials are 34 points lower.
Jason Roose, U.S. Commodities grain analyst, says that the market is getting hit by profit-taking, ahead of the November USDA Report.
"The grains are taking premium out of the market today as we are preparing for next weeks crop production report, as yields continue to come in at impressive levels, favorable weather in South America, & China bean purchases under estimates.
DeAnne Hawthorne-Lahre, StatFutures co-founder and trader, says that the trade is watching big crops get bigger.
“Yes, FC Stone-INTL, the private analyst firm, came out with a U.S. 2016 corn yield estimate Tuesday of 75.3 bushels per acre, and 52.3 bu./acre for soybeans. This confirms the lack of rally in the basis market,” Hawthorne-Lahre says.
She adds, “South America’s acreage looking solid and the Chinese are upping acres in their plans. Market flush with grain and little reason to rally to draw supplies or to ration. Plus, trade volume is low, which indicates the market is comfy.”
The trade will eye the upcoming Presidential election, jobs report on Friday, and WASDE Report a week from today, she says. “In my opinion, the WASDE Report will offer little to change my mind.”
At mid-session, the December corn futures are 2 1/2¢ lower at $3.46, while March futures are 2 1/4¢ lower at $3.55 per bushel. November soybean futures are 7 1/4¢ lower at $9.77, while January soybean futures are 7¢ lower at $9.86. December wheat futures are 1 3/4¢ higher at $4.16. December soy meal futures are $2.90 short ton lower at $306.60. December soy oil futures are $0.06 higher at 34.91¢ per pound. In the outside markets, the Brent crude oil market is $1.47 per barrel lower, the U.S. dollar is lower, and the Dow Jones Industrials are 20 points lower.
The Latest: Ethanol plants are firing on all cylinders, according to the Renewable Fuels Association Wednesday.
According to EIA data analyzed by the Renewable Fuels Association, ethanol production averaged 1.022 million barrels per day (b/d)—or 42.92 million gallons daily. That is a dramatic 31,000 b/d increase from the week before and the largest total in nine weeks. The four-week average for ethanol production stood at 993,000 b/d for an annualized rate of 15.22 billion gallons.
Stocks of ethanol stood at 19.7 million barrels. That is a 0.9% decrease from last week.
In early trading, the December corn futures are unchanged at $3.49, while March futures are unchanged at $3.57 per bushel. November soybean futures are 1/2¢ lower at $9.83, while January soybean futures are 1 1/4¢ lower at $9.92. December wheat futures are 3/4¢ higher at $4.15. December soy meal futures are $0.40 short ton higher at $309.90. December soy oil futures are $0.01 lower at 34.84¢ per pound. In the outside markets, the Brent crude oil market is $0.80 per barrel lower, the U.S. dollar is lower, and the Dow Jones Industrials are 15 points lower.
Corn and soybeans were little changed in overnight trading again as investors who trade in the session seem nervous lately about today's Fed meeting, next week's election and uncertainty over yields. Corn was unchanged, beans were down a penny and Chicago wheat and Kansas City wheat each moved by a single tick. In other news, Monsanto has set Dec. 13 for the date when its shareholders will vote on whether they want to merge with, or more appropriately be acquired by, Bayer AG. Investors don't seem too certain the deal will be approved by regulators as the stock is trading almost $28 below the agreed-upon purchase price.
Here's what happened overnight:
Brent Crude Oil = 1.3% lower.
West Texas Intermediate Crude Oil = 1.5% lower.
Dollar = down 0.3%.
Wall Street = U.S. stock futures little changed in overnight trading.
World Markets = Global stocks mostly lower amid falling oil.