Floor Talk October 18
At the close:
The Dec. corn futures contract settled 1 1/2 cents lower at $4.41. The Nov. soybean futures contract closed 2 cents lower at $12.91. Dec. wheat futures settled 19 3/4 cents higher at $7.05 per bushel. The Dec. soymeal futures contract finished $2.90 per short ton lower at $410.10. The Dec. soyoil futures settled $0.56 higher at $41.68.
In the outside markets, the NYMEX crude oil is $0.52 per barrel higher, the dollar is lower and the Dow Jones Industrials are 18 points higher.
The Dec. corn futures contract is trading 3/4 of a cent higher at $4.43. The Nov. soybean futures contract is trading 4 cents lower at $12.89. Dec. wheat futures are 16 cents higher at $7.02 per bushel. The Dec. soymeal futures contract is trading $3.50 per short ton lower at $409.50. The Dec. soyoil futures are trading $0.44 higher at $41.56.
In the outside markets, the NYMEX crude oil is $0.52 per barrel higher, the dollar is lower and the Dow Jones Industrials are 20 points lower.
One analyst says, "We are trading the Informa numbers. But, soybeans were weaker anyway and found selling interest at $13.00 and just above. I think that caused a little spec liquidation, and maybe some more since beans have been the stronger market this week on the demand ideas about china. Wheat higher on the freeze forecast for Argentina, and that is helping Corn hold, too. Some spec and a very small amount of producer selling showing up in corn and beans so far today, specs also buying corn and wheat. Some very light Brazil selling in beans on the rally and some price fixing showing in the corn from Brazil, both markets seeing the Brazil selling May on back. Kind of quiet today, but the customers are coming back now that USDA is starting to pump the news out a bit."
Informa Economics, a private analyst firm, releases new U.S. planted acreage estimates Friday:
Corn=91.7 million, 4.3 million below a year ago.
Soybeans= 83.9 million, 7.0 million higher than a year ago
All-Wheat= 57.7 million, up 1.6 million vs. a year ago.
What do you think? Is the corn number too low? What about that soybean number, too high?
At the open:
The Dec. corn futures contract is trading 2 cents higher at $4.45. The Nov. soybean futures contract is trading 4 cents higher at $12.97. Dec. wheat futures are 9 cents higher at $6.95 per bushel. The Dec. soymeal futures contract is trading $0.30 per short ton higher at $413.40. The Dec. soyoil futures are trading $0.22 higher at $41.35.
In the outside markets, the NYMEX crude oil is $0.79 per barrel higher, the dollar is lower and the Dow Jones Industrials are 7 points higher.
--USDA announced Friday that China bought 222,000 tons of U.S. soybeans for 2013-14 delivery.
--USDA announced Friday that China bought 140,000 tons of U.S. soybeans for 2013-14 delivery.
--S. Korea miller bought 23,000 tons of U.S. wheat.
--Japan b ought 112,000 tons of food wheat, some of which came from the U.S.
At 8:20 am:
Early calls: Corn is seen 2-4 cents higher, soybeans 3-5 cents higher, and wheat 8-10 cents higher.
Overnight grain, soybean markets=Trading higher.
Crude Oil=$0.82 per barrel higher.
Wall Street=Seen trading higher, ahead of major earnings reports.
World Markets=Asia/Pacific stocks were higher, Europe stocks higher.
More in a minute,
Re: Floor Talk October 18
Brazil is set to buy more U.S. wheat, due to Argentina suffering colder temps. Our Brazilian freelance reporter, Luis Vieira, shared these notes with me. This is just a teaser to a full story he is writing for our Successful Farming magazine:
The wheat prices have been flat over the last couple of months. However, a changing factor is likely to come from South America. Brazil consumes yearly roughly 10 million tons of wheat, but just would be able to grow 4.2 million tons because of some destroyed crops in the winter. Adding to that, Argentina, Brazil's traditional partner of the Mercosur, was not able to export more than 2.5 million tons due also to bad weather in the winter and some gonverment limitations of international trade of grains.
A tax exemption which started in April has benefited the United States and other countries outside of the Mercosur to offer wheat to Brazil without a 10% import tax. So far, however, the US has been the only country that has the quality of the grain approved by Brazilian authorities and local importers, which need mostly hard red winter wheat. In 2013, America exported nearly 2.5 million tons of wheat to the South American country or 30% of what was imported from Brazil. Last year, Americans just exported 32,000 tons to the south.
The trend is expected to remain longer because the Mercosur countries just have a stock of six million tons, while Brazil would need to import at seven million tons, according to a projection of Safras & Mercado, a consultancy based in Porto Alegre. For Kansas analyst Sid Love, from Kropf and Love Consulting Services, for sure the wheat demand from Brazil will help drive prices up, but it would also depend on the developments with corn. He predicts that wheat would be traded at up to US$ 8.50.
highyields, what do you think?
Re: Floor Talk October 18
Thanks for the information on the wheat market, I should get the drill back out of the shed.
I thougth KC wheat could hit $8 on the board price so this helps back my idea up.
We shall see,
usually if I remember right wheat tends to rally up towards that Thanksgiving holiday.
I think corn is bottoming out here, There is enough buying down here that I don't think it gets any lower, farmer's are smart enough and rich enough for the time being they won't have to sell at these levels.
I was told locally that they are buying a lot of beans right out of the field.