Floor Talk September 1
At the close:
At the close, the Sep. corn futures finished 9 1/2¢ lower at $3.11, while Dec. futures finished 8 1/4¢ lower at $3.23 3/4 per bushel. Sep. soybean futures finished 1¢ lower at $9.59, while Nov. soybean futures closed 3/4¢ lower at $9.43 3/4. Sept. wheat futures ended 7 1/4¢ higher at $3.68 1/4. Sep. soymeal futures closed $0.90 short ton higher at $313.10. Sept. soyoil futures closed $0.27 lower at 32.20¢ per pound. In the outside markets, the Brent crude oil market is $1.50 per barrel lower, the U.S. dollar is lower, and the Dow Jones Industrials are 13 points lower.
At 12:30pm, the Sep. corn futures are 6 1/4¢ higher at $3.07, while Dec. futures are 5 3/4¢ higher at $3.21 per bushel. Sep. soybean futures are 4¢ lower at $9.56, while Nov. soybean futures are 2 3/4¢ lower at $9.40. Sept. wheat futures are 4 1/2¢ higher at $3.65. Sep. soymeal futures are $0.20 short ton lower at $312.00. Sept. soyoil futures are $0.26 lower at 32.21¢ per pound. In the outside markets, the Brent crude oil market is $1.26 per barrel lower, the U.S. dollar is lower, and the Dow Jones Industrials are 3 points lower.
Jack Scoville, The PRICE Futures Group’s Senior Market Analyst, says that the markets have been pressured by today’s weaker Weekly Export Sales
“The big sales were in beans which is the dog,” Scoville says. I think a lot of this has to do with the calendar. Lots of people getting out of losing bean positions and hammering the corn and wheat to dress up profits, and those pressures are gone now.”
The trade has real questions about corn production.
“The crop is getting smaller. Not sure about beans, I think it is a very high estimate, but maybe so.
He adds, “What I have seen generally looks good, but starting to hear of sudden death syndrome cases. Corn diseases showing up now too, and the crop is not there.”
There is a good to very good crop, but not near what USDA wants to think, Scoville says.
“We are competitive in the US market and that is reason for the markets here to find support. Some spec buying and some commercial buying,” Scoville says.
In early trading, the Sep. corn futures are 4 1/2¢ higher at $3.06, while Dec. futures are 3 1/2¢ higher at $3.19 per bushel. Sep. soybean futures are 2¢ higher at $9.62, while Nov. soybean futures are 1 1/4¢ higher at $9.44. Sept. wheat futures are 3¢ higher at $3.64. Sep. soymeal futures are $1.20 short ton higher at $313.40. Sept. soyoil futures are $0.20 lower at 32.27¢ per pound. In the outside markets, the Brent crude oil market is $0.71 per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 1 points higher.
Private exporters reported to the U.S. Department of Agriculture the following activity:
--Export sales of 129,540 metric tons of corn for delivery to Mexico. Of the total 99,060 metric ton is for delivery during the 2016/2017 marketing year and 30,480 metric tons is for delivery during the 2017/2018 marketing year and;
--Export sales of 147,000 metric tons of soybeans for delivery to unknown destinations during the 2016/2017 marketing year.
The marketing year for corn and soybeans began Sept. 1.
Prices rose overnight as export sales were reported for corn, beans and even wheat yesterday. It's been a while since we've seen a wheat sale, so that's a positive. The Justice Department is suing to block Deere's purchase of Precision Planting LLC as the former would own 86% of the precision planting technology available to farmers and said that would allow the company to control prices.
Here's what happened overnight:
Brent Crude Oil = 0.2% lower.
West Texas Intermediate Crude Oil = 0.1% lower.
Dollar = down 0.1%.
Wall Street = U.S. stock futures slightly higher in overnight trading.
World Markets = Global stocks mixed on positive US economic data.
Re: Floor Talk September 1
Well, well, well. Tony, you have been relaying Jack's messages all summer long.......and it's been nothing but bearsih news. Record acres and record yields are most assuredly going to be had by the entire corn belt. Rain makes grain........the wettest drought ever......corn likes heat.........the crop ratings are at an alltime record high level......this record crop is going to increase the carryover numbers past burdensome levels. Good old Jack has been telling us ALL summer what a record breaking crop we have coming. I really can't believe that he is changing his tune.......especially since the combines haven't really started to roll yet.
I guess if you sit on the fence, no one can say you are wrong.........you only have to worry about falling off.