Floor Talk September 17

[marketeye]

Notice: The Federal Reserve Wednesday said it will keep interest rates at historical lows for a considerable amount of time, after the bond-buying program ends.

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At the close:

The December corn futures closed 2 cents lower at $3.41.

November soybean futures ended 1 3/4 cents higher at $9.82.

December wheat futures settled 3 cents higher at $4.99.

For Dec. soybean meal futures, the contract closed $1.90 per short ton lower at $324.20; Dec. soybean oil futures finished $0.55 higher at $33.55.

In the outside markets, the crude oil market trades $0.46 per barrel lower, the dollar is higher, and the Dow Jones Industrials are 70 points higher.

Jacob Burks, First Capitol Ag, says the soybean market has seen some action, today. "We’ve seen an 11 cent trading range in the beans and currently are only 1 higher.  Support is probably coming from lack of bearish news more than anything, maybe possibilities of rainy season in Brazil moving later into planting season?  I think most were expecting an even larger number going to China after the agreement last week between China Importers and USA.
It still feels like a slow grind lower in corn, with good weather ahead.  Huge yields being thrown around all over the southern part of the Corn Belt," he says.

Mike

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At mid-day:

The December corn futures are trading 2 1/2 cents lower at $3.41.

November soybean futures are trading 1 cent higher at $9.81.

December wheat futures are 2 1/4 cents higher at $4.98.

For Dec. soybean meal futures, the contract trading $1.20 per short ton lower at $324.90; Dec. soybean oil futures traded $0.48 higher at $33.48.

In the outside markets, the crude oil market trades $0.69 per barrel lower, the dollar is lower, and the Dow Jones Industrials are 12 points higher.

Mike

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At 9am:

China buying supports today's soybean market.

Private exporters reported to the U.S. Department of Agriculture export sales of 620,000 metric tons of soybeans to China during the 2014/2015 marketing year. 

The marketing year for soybeans began Sept. 1.

Also, in Milwaukee earlier this week, a group of Chinese buyers signed agreements to buy 4.8 million tonnes of US soybeans for the 2014/15 marketing year.

Mike

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At the open:

The December corn futures are trading 3 cents lower at $3.40.

November soybean futures are trading 2 1/4 cents higher at $9.83.

December wheat futures are unchanged at $4.96.

For Dec. soybean meal futures, the contract trading unchanged at $326.10; Dec. soybean oil futures traded $0.22 higher at $33.22.

In the outside markets, the crude oil dropped $0.06 per barrel higher, the dollar is lower, and the Dow Jones Industrials are 28 points higher.

Mike

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At 7:38am:

Early calls: Corn is 2-4 cents lower, soybeans 2-4 cents higher, and wheat 1-2 cents lower.

Trackers:
Overnight grain, soybean markets = Trading mostly lower.
Brent Crude Oil = $0.02 per barrel lower.
Dollar = Lower
Wall Street = Seen higher, as consumer prices drop, in August.
World Markets = Europe stocks were higher, Asia/Pacific stocks were mixed.

More in a minute,

Mike

[luisvieira]

Hey Mike and boys,

There is an issue about Monsanto in Brazil that I wanted to share with you. Approximately five million Brazilian farmers sued the American biotech giant a year ago because they did not want to pay each year on royalties from "renewal" seed harvests. The company demands royalties from any crop generation produced from its genetically modified seeds, which is patented. It then charges a two percent royalty on each subsequent crop produced.

"Monsanto gets paid when it sells the seed. The law gives producers the right to multiply the seeds they buy, and nowhere in the world is there a requirement to pay again." But in this situation, "producers are in effect paying a private tax on production", argued Jane Berwanger, lawyer for the Brazilian farmers lat year.

In 2013, Brazilian judge ruled in favor of the farmers, but Monsanto has appealed on the decision. As soon as I know about the new decision on the second instance, I will let you guys know.

[sw363535]

Luis that is a big report ----- Thank you ----- We need to follow that appeal.