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Veteran Advisor

Floor Talk October 16

At the close:

 

 

 

The December corn futures settled 4 3/4 cents higher at $3.52 per bushel.

 

 

 

November soybean futures finished 14 cents higher at $9.66.

December wheat futures closed 11 cents higher at $5.17.

For Dec. soybean meal futures, the contract ended $7.30 per short ton higher at $334.60; Dec. soybean oil futures finished $0.38 higher at $32.36.

 

 

 

In the outside markets, the crude oil is $1.29 per barrel higher, the dollar is higher, and the Dow Jones Industrials are 5 points lower.

 

Mike

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At mid-session:

 

The December corn futures are trading 3 1/2 cents higher at $3.51 per bushel.

 

November soybean futures are trading 8 cents higher at $9.60.

December wheat futures are trading 9 cents higher at $5.15.

For Dec. soybean meal futures, the contract is $7.20 per short ton higher at $334.50; Dec. soybean oil futures are trading $0.12 higher at $32.10.

 

In the outside markets, the crude oil is $0.32 per barrel lower, the dollar is higher, and the Dow Jones Industrials are 52 points lower.

 

Jacob Burks, First Capitol Ag Risk Advisor, says today's grain market strength is about money, money, money.  "Money flow wins over fundamentals.  Stock market tanking and other commodities too high.  Grains are the undervalued market.  It's a mid-harvest rally, while producers have been sitting in the office not able to be in the fields and they still aren’t willing to let go of any.  Basis improvements will probably be what entices the producers to let go of any bushels that they have planned to store.  I still feel that when the extra bushels start hitting the market we will see some selling pressure.  Maybe even new lows."

 

Mike

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At the open:

The December corn futures are trading 1 cent higher at $3.48 per bushel.

 

November soybean futures are trading 1 cent higher at $9.63.

December wheat futures are trading 1 cent lower at $5.04.

For Dec. soybean meal futures, the contract is $2.40 per short ton higher at $329.70; Dec. soybean oil futures are trading $0.38 lower at $32.49.

 

In the outside markets, the crude oil is $0.84 per barrel lower, the dollar is higher, and the Dow Jones Industrials are 173 points lower.

 

Mike

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At 7:15am:

The to-date estimate for the October average price for December Corn at $3.48 and for November Soybeans at $9.36.

 

Mike

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At 7:00am:

Early calls: Corn is 1-2 cents lower, soybeans 3-5 cents higher, and wheat 3-5 cents lower.

Trackers:
Overnight grain, soybean markets = Trading mostly lower.
Brent Crude Oil = $1.85 per barrel lower.
Dollar = Higher
Wall Street = Seen lower, as disappointing economic reports are released. Plus, market volatility is creating a sell-off.
World Markets = Europe stocks were lower, Asia/Pacific stocks were lower.

 

More in a minute,

 

Mike

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13 Replies
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Veteran Advisor

Re: Floor Talk October 16

Gasoline in Batavia, Illinois at $ 2.99.  

 

Talk about commodity prices dropping.

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Veteran Advisor

Re: Floor Talk October 16

Isn't amazing how we adapt ourselves to higher priced items?  How much was gas the last time that crude was at $84.00.  Like I have said before, ultimately, it is the consumer that pays the penalty for the price spikes.  Gas looks cheap now at $3.00.  Electricity to crack the crude into it's component parts has not gone up that much.  No one complains about the $3.00 gas - what a value!  But compared to what?  

 

Jen

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Veteran Advisor

Re: Floor Talk October 16

And, added to that, is that when prices go up, the pumps show it immediately, but on the way down, not so much.   It's amazing how on the way up, all the stations are now filled with the high priced fuel, and on the way down, gee, the tanks are full of the high priced fuel, so we have to lag a month or so while that is used up.  Again, the cunsumer pays the cost - because they don't realize how they are being fleeced...

 

Jen

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Senior Contributor

Re: Floor Talk October 16

Hello guys,

 

There are bad news about the Brazilian crop. Here it is from my own agrosouth-news:

 

The soybean planting works have stopped in the Brazilian state of Mato Grosso due to the lack of rains in the last few days. The information was gave by Ricardo Tomczyk, president of the Association of Corn and Soybean Growers of Mato Grosso, during a press conference yesterday.

 

“Planting is delayed and certainly that will mean a fall in productivity, wrong windows of planting and more incidence of diseases”, said Tomczyk. He added that these factors could bring down the forecast of a 27 million tons crop in the state. “These numbers will be revised due to this delay”, affirmed.

 

Another preoccupation is the possible delay that it can cause later to the planting of the second corn crop and cotton. “Producers will have to work faster and better”, concluded Tomczyk.

 

http://www.agrosouth-news.com/?p=1879

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Veteran Advisor

Re: Floor Talk October 16

Helen Pound, Sr. Futures Market Specialist, sent this note to her customers Thursday, in a daily wire.

 

"Dennis Gartman reprinted a chart showing the huge reliance of various governments in his morning wire.  The list of countries whose budgets are underwater with crude oil trading near $80 is topped by Iran; needing an oil price of $140/barrel to support the government budget.  The governments of Venezuela, Algeria, Nigeria and Ecuador need oil prices near $120, Iraq and Angola need prices near $100, and Saudi Arabia and Libya need prices near $90.  The government budgets of Kuwait ($75), UAE ($70), and Qatar ($65) are still in the black. Note that a number of these countries have been active buyers of US grains.  Expect to see continued fallout of cheaper oil prices in the US grain export markets, as well in world financial market and geopolitics."

 

Mike

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Contributor

Re: Floor Talk October 16

let them drink their oil,, we'll eat our grain

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Senior Contributor

Re: Floor Talk October 16

Like Marie Antoinette said "Let them eat cake"

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Senior Advisor

And I'll wager ......

..... the oil producing countries that buy our grain will continue to do so. There are many reasons to think that, assuming the opinion was implying an oil country in the red would might look elsewhere for grain.

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Contributor

Re: And I'll wager ......

the world wide economy is slowing down and could be a long couple of years, hard to predict the future to far ahead, I'm sure I don't know

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