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Veteran Contributor
Posts: 534
Registered: ‎09-09-2014
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Floor Talk September 13

[ Edited ]

At the close:

At the close, the Dec. corn futures finished unchanged at $3.51, while March futures ended unchanged at $3.63 3/4. Nov. soybean futures closed 10¢ higher at $9.60 1/2, Jan. soybean futures settled 10¢ higher $9.70 3/4. September wheat futures ended 1 1/4¢ higher at $4.43 1/4. Dec. soy meal futures settled $5.40 per short ton higher at $302.10. Dec. soy oil futures closed $0.10 lower at 35.09¢ per pound.  In the outside markets, the Brent crude oil market is $1.05 higher, the U.S. dollar is higher, and the Dow Jones Industrials are 12 points higher.

 

Mike

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At mid-session:

At mid-session, the Dec. corn futures are 1 1/4¢ higher at $3.52, while March futures are 1 1/2¢ higher at $3.65. Nov. soybean futures are 7¢ higher at $9.57, Jan. soybean futures are 6 3/4¢ higher $9.67. September wheat futures are 3/4¢ higher at $4.42. Dec. soy meal futures are $3.90 per short ton higher at $303.90. Dec. soy oil futures are $0.04 lower at 35.15¢ per pound.  In the outside markets, the Brent crude oil market is $0.75 higher, the U.S. dollar is higher, and the Dow Jones Industrials are 7 points higher.

 

Mike

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At 9:55am;

The markets continue a slow march higher.

 

Deanne Hawthorne-Lahre, StatFutures co-founder and trader, says investors had yesterday’s bearish USDA data baked into the markets, already.

“We think the news was in the market, and the street was way too short, and when we bounced yesterday, all equations had to be re-evaluated,” Hawthorne-Lahre says.

She adds, “Also, it's clear that China is going to take beans at these price levels and corn is along for the ride. But, we'll see if that demand can give this stronger price action some legs.

Near term the demand is friendly, but Russia’s 81 mmt wheat crop is gonna be a problem in the next few months, Hawthorne-Lahre says.

 

Mike

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At 9:30am:

If you missed it, earlier, the USDA announced fresh soybean sales Wednesday.

 

Private exporters reported to the U.S. Department of Agriculture export sales of 167,370 metric tons of soybeans for delivery to Mexico during the 2017/2018 marketing year.
The marketing year for soybeans began Sept. 1.

 

Mike

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At 8:45am:

In early trading , the Dec. corn futures are 2 3/4¢ higher at $3.54, while March futures are 2 3/4¢ higher at $3.66. Nov. soybean futures are 4¢ higher at $9.54, Jan. soybean futures are 4¢ higher $9.64. September wheat futures are 4 3/4¢ higher at $4.46. Dec. soy meal futures are $2.30 per short ton higher at $302.30. Dec. soy oil futures are $0.01 higher at 35.20¢ per pound.  In the outside markets, the Brent crude oil market is $0.40 higher, the U.S. dollar is higher, and the Dow Jones Industrials are 12 points lower.

 

Mike

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Soybeans were higher overnight while corn was little changed -- nobody's sure how to trade the USDA report right now since pretty much nobody trusts it. The USDA said it would evaluate the effects of Harvey and Irma on the crops but that leaves more questions than answers. As in `how much did the hurricanes actually have an effect on corn yields.' Anyway, beans added a nickel, corn was unchanged and wheat was 2-3 cents higher in overnight trading. In weather news, there are no hurricanes about to hit the US for the first time in a few weeks, which is nice. A few thunderstorms in Minnesota and Iowa are expected into the weekend, but otherwise it's pretty quiet out there. See all the details in today's 3 Big Things at http://www.agriculture.com/news/three-big-things/3-big-things-today-september-13

 

Here's what happened overnight:

 

Brent Crude Oil = up 0.8%

West Texas Intermediate = up 0.9%

Dollar = down 0.1%.

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

World Markets = Global stocks lower on geopolitical worries. 

Honored Advisor
Posts: 15,051
Registered: ‎05-13-2010
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Re: Floor Talk September 13

I think prices were already so low that they were traded for factors other than supply and after USDA kneecapped us, endusers even had too much sympathy to take it as low as one might expect.  I reckon even North Korea feeds their prisoners a little, now and then. 

 

But you look at it, if USDA couldn`t bring themselves to take it to the 165 corn and 45 beans that everyone thinks, they could just as well raise the yields and totally destroy their credibility.  Putting out a "167 corn and 47 beans" wouldn`t have made a different effect on prices than actually raising it, at "these prices".   JMO