Floor Talk October 20
At the close:
At the close, the Dec. corn futures settled 4 1/2¢ lower at $3.44 1/2. March futures settled 4 1/4¢ lower at $3.58 1/2. Nov. soybean futures closed 7 3/4¢ lower at $9.78 3/4. Jan. soybean futures closed 7 3/4¢ lower at $9.89 1/4. December wheat futures closed 6 3/4¢ lower at $4.26. Dec. soy meal futures ended $4.30 per short ton lower at $317.10. Dec. soy oil futures closed 0.33¢ higher at 34.16¢ per pound. In the outside markets, the Brent crude oil market is $0.32 higher, the U.S. dollar is higher, and the Dow Jones Industrials are 142 points higher.
The Dec. corn futures are 3 1/4¢ lower at $3.45. March futures are 2 3/4¢ lower at $3.60. Nov. soybean futures are 5¢ lower at $9.81. Jan. soybean futures are 5 3/4¢ lower at $9.91. December wheat futures are 2¢ lower at $4.30. Dec. soy meal futures are $3.30 per short ton lower at $318.10. Dec. soy oil futures are 0.28¢ higher at 34.11¢ per pound. In the outside markets, the Brent crude oil market is $0.02 higher, the U.S. dollar is higher, and the Dow Jones Industrials are 112 points higher.
Dustin Johnson, Senior Strategist for AgYield, says that the markets are lower due to harvest pressure.
“Weather is conducive for harvest and there is likely to be a speedy catch-up. Many producers are making the actual cash sale this year rather than placing corn on delayed pricing,” Johnson says.
He adds, “Corn has been reluctant to find the same strength as soybeans which is likely due to the large competition for growers to price corn at higher levels, while hedge funds are already short.”
On Friday, private exporters reported to the U.S. Department of Agriculture the follow activity:
- Export sales of 198,000 metric tons of soybeans for delivery to China during the 2017/2018 marketing year.
- Export sales of 120,000 metric tons of corn for delivery to Spain during the 2017/2018 marketing year.
- Export sales of 125,000 metric tons of corn for delivery to unknown destinations during the 2017/2018 marketing year.
The marketing year for corn and soybeans began September 1.
In early trading:
The Dec. corn futures are 2 1/2¢ lower at $3.46. March futures are 2¢ lower at $3.60. Nov. soybean futures are 2¢ higher at $9.88. Jan. soybean futures are 2 1/4¢ higher at $9.99. December wheat futures are 1/2¢ lower at $4.32. Dec. soy meal futures are $1.20 per short ton lower at $320.20. Dec. soy oil futures are $0.50 higher at 34.33¢ per pound. In the outside markets, the Brent crude oil market is $0.20 lower, the U.S. dollar is higher, and the Dow Jones Industrials are 69 points higher.
Soybeans were higher overnight, as was wheat, while corn was little changed. It looks like prices got a boost from some demand as China bought about 385,000 metric tons of U.S. soybeans, as reported yesterday, and the export sales report for wheat and corn was strong. That's good news for a market looking for some bullish data. Soybeans gained about 2 cents, wheat rose 1-2 cents and corn was off by less than a penny in overnight trading. In weather news, it's extremely dry in South Dakota and Kansas today, but that will change with rainfall in the forecast for at least much of central Kansas. Storms are expected to develop over Iowa starting late tonight into tomorrow and likely will continue through the weekend, according to the National Weather Service. That will again put the harvest behind the 8-Ball after some progress was made this week. Check out all the news in today's 3 Big Things at http://www.agriculture.com/news/three-big-things/3-big-things-today-october-20.
Brent Crude Oil = down 0.4%
West Texas Intermediate = down 0.6%
Dollar = up 0.1%.
Wall Street = U.S. stock futures higher in pre-market trading.
World Markets = Global stocks higher overnight.