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Veteran Advisor

Floor Talk, September 18, 2019

Spoiler

At 1:35pm:

The Fed Reserve cut the benchmark interest rate by 25 basis points.

Mike
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At the close:

At the close, the Dec. corn futures finished 3 1/4¢ higher at $3.71 3/4. March corn futures closed 2 1/2¢ higher at $3.82 1/2.

Nov. soybean futures finished 5¢ lower at $8.88 1/4. Jan. soybean futures settled 5¢ lower at $9.02 1/4.

Dec. wheat futures ended 5 1/2¢ higher at $4.89 1/2.



December soymeal futures closed $2.40 per short ton lower at $295.40.

 December soy oil futures finished $0.01 higher at 30.00¢ per pound.



In the outside markets, the NYMEX crude oil market is $1.36 per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 171 points lower.

Mike
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At midsession:

At midsession, the Dec. corn futures are 1 1/4¢ higher at $3.69 3/4. March corn futures are 1 1/4¢ higher at $3.81.

Nov. soybean futures are 4 1/2¢ lower at $8.89 1/4. Jan. soybean futures are 4 1/4¢ lower at $9.03.

Dec. wheat futures are 4 1/2¢ higher at $4.88.



December soymeal futures are $2.00 per short ton lower at $295.80.

 December soy oil futures are $0.07 higher at 30.06¢ per pound.



In the outside markets, the NYMEX crude oil market is $1.17 per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 66 points lower.

Mike
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At 9am:
In early trading, the Dec. corn futures are 1 1/4¢ lower at $3.66 3/4. March corn futures are 1 1/4¢ lower at $3.78.

Nov. soybean futures are 3 3/4¢ lower at $8.90. Jan. soybean futures are 3 3/4¢ lower at $9.03.

Dec. wheat futures are 1/2¢ lower at $4.83 3/4.



December soymeal futures are $1.40 per short ton lower at $296.40.

 December soy oil futures are $0.03 lower at 29.96¢ per pound.



In the outside markets, the NYMEX crude oil market is $1.00 per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 22 points lower.

Al Kluis, Kluis Advisors, says that despite the latest Chinese purchases of U.S. soybeans, the market needs fresh bullish news each day.

“Soybean traders got another announcement of an export sale to China on Tuesday morning, which puts the total since last Friday at 720,000 metric tons. Why did soybeans slip with the bullish news? Recall that prices rallied nicely on the prospects China was buying U.S. soybeans. This is a great example of “buy the rumor, sell the fact”. The bulls need some fresh news before they will be willing to mount another push higher,” Kluis told customers in a daily note.

Kluis added, “The Federal Reserve Board will release its decision on short-term interest rates this afternoon. Many analysts expect to see at least one more rate cut this year. Will it be today? Whatever the Fed commentary reveals about future monetary policy decisions will likely have a big impact on the stock market and the U.S. dollar.”

Mike

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4 Replies
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Honored Advisor

Re: Floor Talk, September 18, 2019

So....the traders need bullish news every day?    I've had a open invitation for any of them to come to my farm and see all of my prevent plant acres and all of my late, short soybeans.   As of yet, I've not see any of them show up.

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Honored Advisor

Re: Floor Talk, September 18, 2019

And, another thing, beans rallied 8 cents on the China news. They rallied 30 on the supply cut from NASS. Can we at least keep the stories straight once in a while. 

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Senior Advisor

Re: I guess I'm having understanding what NASS supply cut you're talking about.

The Aug. 12 NASS crop production report listed soybeans as 75.866 million acres, yield at 47.9 bpa and production at 3.632 billion bushel.  The Sept 12 NASS corp production report listed soybeans unchanged at 75.866 million acres, yld @ 47.9 bpa and production at 3.632 billion bushel.

  On the other hand, as seen in the chart of Nov 19 beans, the price jumped some 30 cents on the announcement that the Chinese had purchased 204,000 metric tons on 9/12 followed by comparable purchases 9/15 & 9/16.

  It seems pretty clear to me that the 30 cent increase in the price of soybeans is on account of the Chinese purchases.

export sales announcments.png
Nov 19 beans.png
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Honored Advisor

Re: I guess I'm having understanding what NASS supply cut you're talking about.

Well, egg on my face, I was on vacation and didn't realize my error in assumptions. Thanks for the correction.

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