Floor Talk, October 24, 2018
The RFA announced weekly ethanol production numbers, Wednesday.
In early trading, the December corn futures are 1 1/4¢ lower at $3.69. March futures are 1 1/2¢ lower at $3.81.
November soybean futures are 4 1/2¢ lower at $8.53. January soybean futures are 4 1/2¢ lower at $8.66. December wheat futures are 6¢ lower at $5.03.
December soymeal futures are 3.10¢ per short ton lower at $307.60. December soy oil futures are $0.12 lower at 28.64¢ per pound.
In the outside markets, the NYMEX crude oil market is $0.73 higher, the U.S. dollar is higher, and the Dow Jones Industrials are 16 points lower.
Al Kluis, Kluis Advisors, says that the outside markets are catching the attention of investors involved in the ag markets.
“At first glance, this might appear to be boring. However, it feels like a win for the bulls. The stock market experienced another wild downturn on Tuesday, yet the grains managed to close almost steady,” Kluis stated in a daily note to customers.
Kluis added, “Even though we have not seen an overwhelming correlation between grains and the stock market recently, it is always concerning for grain traders when the stock market sees a washout move lower.”
Meanwhile, investors have one eye on South America’s soybean planting season.
“South American weather will start moving to center stage as the US harvest has hit the halfway point. Any stories regarding problem areas will be magnified,” Kluis stated to customers, Wednesday.
What say you? Let's see you weigh in.