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Veteran Contributor

Floor Talk October 18

At the close:
At the close, the Dec. corn futures settled 1 1/2¢ lower at $3.48 1/2. March futures finished 1 1/2¢ lower at $3.62 1/4. Nov. soybean futures closed 1/2¢ lower at $9.84.  Jan. soybean futures finished 1/4¢ lower at $9.95. December wheat futures closed 4 3/4¢ lower at $4.30. Dec. soy meal futures closed $0.20 per short ton higher at $321.80. Dec. soy oil futures ended $0.18 lower at 33.41¢ per pound.  In the outside markets, the Brent crude oil market is $0.19 higher, the U.S. dollar is lower, and the Dow Jones Industrials are 165 points higher.

 

Mike

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At 12:12pm:

Here's this week's Renewable Fuels Association's report on ethanol production.

 

According to EIA data analyzed by the Renewable Fuels Association, average ethanol production expanded by 5.4% to 1.019 million barrels per day (b/d)—or 42.80 million gallons daily. That is up 52,000 b/d from the week before and a four-week high. The four-week average for ethanol production dropped to 998,000 b/d–the first time in 23 weeks to fall below a million b/d, for an annualized rate of 15.30 billion gallons.

Stocks of ethanol remained at 21.5 million barrels for the third straight week.

Imports of ethanol remained flat at zero b/d for the fifth week in a row.

 

Mike

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At mid-session:
At mid-session, the Dec. corn futures are 1 3/4¢ lower at $3.48. March futures are 1 3/4¢ lower at $3.62. Nov. soybean futures are 1/4¢ lower at $9.84.  Jan. soybean futures are 1/4¢ lower at $9.95. December wheat futures are 4¢ lower at $4.30 3/4. Dec. soy meal futures are $0.50 per short ton higher at $322.10. Dec. soy oil futures are $0.15 lower at 33.44¢ per pound.  In the outside markets, the Brent crude oil market is $0.02 higher, the U.S. dollar is lower, and the Dow Jones Industrials are 141 points higher.

 

Jack Scoville, The PRICE Futures Group’s Senior Market Analyst, says that trading activity is slow.  
“Investors are still talking harvest and ideas that harvest should really ramp up this week, due to the drier weather.  Some of my western Corn Belt customers are finally getting into the fields, others in central and eastern Corn Belt areas are getting done with beans and moving to corn, if it is dry enough. 
Scoville adds, “The markets are certainly paying attention to SA weather that looks to improve.  No one doing much trading, mostly commercials and funds from what I can see. The retail customers are quiet,” Scoville says.
 

Brian A. Rydlund, CHS Hedging Market Analyst, agrees that the markets lack fresh trading news.
“Most thoughts center on weather, for both the U.S. and South America. In the U.S., it’s a nice harvest week, combines rolling and yields continue to feel “as expected & better” in many spots,” says Rydlund.
For South America, better planting weather, involving rain for northern and northeastern Brazil (where it’s needed)and net drying for Argentina, speeding corn planting, is being digested by the marktets, Rydlund says.

 

 

Mike

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In early trading:
The Dec. corn futures are 1¢ lower at $3.49. March futures are 1¢ lower at $3.62. Nov. soybean futures are 3/4¢ lower at $9.84.  Jan. soybean futures are 3/4¢ lower at $9.94. December wheat futures are 3¢ lower at $4.31. Dec. soy meal futures are $0.70 per short ton lower at $320.90. Dec. soy oil futures are $0.02 lower at 33.57¢ per pound.  In the outside markets, the Brent crude oil market is $0.30 higher, the U.S. dollar is higher, and the Dow Jones Industrials are 105 points higher.

 

 

Mike

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Soybeans and corn were slightly lower this morning amid more favorable harvest weather in the Midwest. They were only down about a penny each in overnight trading, while wheat was down about 2 cents, which indicates that there's still concern about how far behind the harvest actually is. The USDA said in a report that Argentina soybean planting may decline due to excessive rainfall in the South American country. In US weather news, a red flag warning is in effect for much of North Dakota as that state has gone from having too much moisture to not enough. Check out all the details in today's 3 Big Things at http://www.agriculture.com/news/three-big-things/3-big-things-today-october-18.
 

Here's what happened overnight:

 

Brent Crude Oil = up 0.7%

West Texas Intermediate = up 0.4%

Dollar = up 0.2%.

Wall Street = U.S. stock futures higher in pre-market trading.

World Markets = Global stocks higher overnight. 

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4 Replies
Veteran Advisor

Re: Floor Talk October 18

A few combines are back in the field yesterday and we can assume many more will be today.  Likely, soybean harvest will go hot and heavy to beat the forecast weekend rain.  We might be about done with beans this week if harvest goes well.  Talked to a good friend who finished beans a couple of weeks ago and says they did 60 bpa, quite good for his farm.

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Veteran Advisor

Re: Floor Talk October 18

"as expected" fits the bean yield we're getting = down 10 to 15 percent from last year.

That cool/wet August did us in.  Beans are smaller than normal and they stopped flowering/setting pods.

Sunny, warm and low humidity = can't get the beans out fast enough.

 

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Honored Advisor

Re: Floor Talk October 18

Same here Cat.......... 20% below an average crop.

 

We were so excited getting a cool and very wet august..  Less irritation cost, etc and nice days.... not one day in august over 85 degrees.

 

 

Beans quit blooming and the corn has toxic fungus..... the stuff without traits sold at high prices is really standing out...

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Veteran Contributor

Re: Floor Talk October 18

small crops always get smaller just like big ones get bigger

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