Floor Talk October 26
At the close:
At the close, the December corn futures settled 4 3/4¢ higher at $3.54, while March futures finished 4 1/4¢ higher at $3.63 1/4 per bushel. November soybean futures finished 19 1/4¢ higher at $10.10, while January soybean futures finished 18 3/4¢ higher at $10.21. December wheat futures settled 7 1/4¢ higher at $4.11 1/2. December soy meal futures closed $10.90 short ton higher at $319.10. December soy oil futures closed $0.08 lower at 35.72¢ per pound. In the outside markets, the Brent crude oil market is $0.83 per barrel lower, the U.S. dollar is lower, and the Dow Jones Industrials are 21 points higher.
Mike North, President Commodity Risk Management Group, says that palm oil futures closed higher, helping the soybean complex.
“Additionally, strong crush margins in China support import soybean purchases. This gave rise to a breach of $10 in November beans overnight. Markets continue to be buoyed by speculative bids while prices remain above $10/bu,” North says.
However, with South America jumping in front of the US on a sale to China overnight, pressure will exist to keep US prices lower in order to maintain the export story that has dominated the conversation in recent weeks, North says.
“Additionally, crude oil inventory builds will not allow the soybean oil story much more room, giving cause to some correction in the market that has led crush values higher,” North says.
The fact that producers are being instructed to make some new crop sales of 2017 soybean production is a good thing. When another significant shift to added soybean acres is already making news, $10 values become something to grab hold with early sales, North says.
At mid-session, the December corn futures are 5 1/4¢ higher at $3.54, while March futures are 4 1/2¢ higher at $3.63 per bushel. November soybean futures are 12 1/4¢ higher at $10.03, while January soybean futures are 11 3/4¢ higher at $10.14. December wheat futures are 9 1/2¢ higher at $4.13 3/4. December soy meal futures are $7.20 short ton higher at $315.40. December soy oil futures are $0.10 lower at 35.70¢ per pound. In the outside markets, the Brent crude oil market is $0.41 per barrel lower, the U.S. dollar is lower, and the Dow Jones Industrials are 50 points higher.
Alan Brugler, President Brugler Marketing & Management LLC, says that the higher markets are a result of macro factors.
“The move up is mostly due to weaker dollar. If the buck is going to pull back, one should not sell anything.”
Though it is still strong, the weekly ethanol production has dropped, according to Wednesday's Renewable Fuels Association report.
According to EIA data analyzed by the Renewable Fuels Association, ethanol production averaged 991,000 barrels per day (b/d)—or 41.62 million gallons daily. That is down 7,000 b/d from the week before. The four-week average for ethanol production stood at 983,000 b/d for an annualized rate of 15.07 billion gallons.
Stocks of ethanol stood at 19.9 million barrels. That is a 4.6% increase from last week.
At the open:
At the open, the December corn futures are 1 3/4¢ higher at $3.51, while March futures are 1 1/2¢ higher at $3.60 per bushel. November soybean futures are 8¢ higher at $9.98, while January soybean futures are 7 1/4¢ higher at $10.09. December wheat futures are 1 3/4¢ higher at $4.06. December soy meal futures are $3.20 short ton higher at $311.40. December soy oil futures are $0.18 higher at 35.98¢ per pound. In the outside markets, the Brent crude oil market is $0.96 per barrel lower, the U.S. dollar is lower, and the Dow Jones Industrials are 85 points lower.
Soybeans were higher after China on Tuesday purchased another large cargo from the U.S. The Department of Agriculture said China bought 516,000 metric tons of beans, the latest bit of strong demand news. Weather maps are mostly quiet today with a couple of isolated showers popping up in parts of northwestern Missouri and northern Iowa. In other news, the European Union is reportedly considering opening an investigation into the ChemChina acquisition of Syngenta, though the companies said they remain committed to the transaction even if it takes longer than originally expected to close.
Here's what happened overnight:
Brent Crude Oil = 1.5% lower.
West Texas Intermediate Crude Oil = 1.5% lower.
Dollar = down 0.2%.
Wall Street = U.S. stock futures lower in overnight trading.
World Markets = Global stocks fall along with oil futures.
Re: Floor Talk October 26
Analysts advising Nov 17 sales at $10. Worth looking at but they need to give advise on how to ride the price up it it gets higher. Selling at or above the cost of production is fine, but in the end one has to sell in the top 1/3 to beat the competition.