Floor Talk, September 2, 2021

[marketeye]

At the close:

At the close, the Dec. corn futures finished 2 3/4¢ higher at $5.25. March futures closed 2 1/4¢ higher at $5.34. May corn futures finished 2¢ higher at $5.39.

November soybean futures settled 5 1/2¢ higher at $12.83.

Jan. soybean futures ended 4 1/2¢ higher at $12.91. March soybean futures finished 3 1/2¢ higher at $12.97.

Dec. wheat futures ended 2 3/4¢ higher at $7.17.

Dec. soymeal futures settled $3.50 per short ton lower at $340.00.

Dec. soy oil futures closed $0.85 higher at 58.79¢ per pound.

In the outside markets, the NYMEX crude oil market is 1.39 higher (+2.03%) at $69.98. The U.S. dollar is lower, and the Dow Jones Industrials are 69 points higher (+0.20%) at 35,382 points.

On Thursday, private exporters reported to the USDA export sales of 126,000 metric tons of soybeans for delivery to China during the 2021/2022 marketing year.

The marketing year for soybeans began Sept. 1.

Bob Linneman, Kluis Advisors, says that investors are watching the slow export pace.

“Grain futures continued to slide Wednesday. Corn and soybeans are below major moving average support lines. Daily momentum indicators are reaching oversold levels on many of the charts. Are we seeing more of a seasonal push lower? Or are the funds wanting to trim their long position," Linneman stated in a note to customers.

Yesterday, the USDA announced it will be making adjustments to U.S. acreage numbers in the September 10 report. The government normally makes these adjustments in its October report.

Linneman added, "The grain bulls are backed into a corner right now. A slow export pace should put a fair amount of bushels back into the carryout. How much will we see in the report on September 10? That could set the stage for the rest of harvest."

Separately, the USDA’s Weekly Export Sales Report Thursday shows decent demand figures for corn.

Corn= 1.459 million metric tons (mmt.) vs. the trade expectations of 850,000-1.60 mmt.

Soybeans= 2.2 mmt. vs. the trade's expectation of 725,000-1.40mmt.

Wheat= 295,300 mt. vs. the trade's expectation of 200,000-450,000mt.

Soybean meal= 414,300 mt. vs. the trade's expectation of 75,000-200,000mt.

Mike

---------

At 8:45am:

Ag markets keep declining Thursday.

Mike

[timetippingpt]

Exports sales are pretty good.

Export shipments are low because you can't ship what you don't have out of a closed port 🙂 We have got to redistribute some of our rocket scientist out of the DOD and put them on Alan's payroll   🙂

(Don't need them at DOD anymore because we have all the "over-the-horizon" rocket capabilities we need to defend ourselves and our allies.)

[wrightcattle]

This could be the year the corn party is over. 

Say a 13.7 billion bu. Crop and people simply aren't interested. 

So back to the $4 bleachers? We'll see LoL. 

[Hobbyfarmer]

new vehicles just went from slow to almost not gonna happen.

More lock downs in western Pacific rim countries. Even less computer chips.

Guess I got lucky?

Got mine few weeks ago.

With the bells and whistles on it I'm probably depriving 4 or 5 other people a new vehicle.

Probably be scared to know how many chips are in it.

The computer controled suspension side by side took from March to middle of July to get here.

The pickup took a month longer. Ordered about same time.

Was able to just pluck the computer controled baler off the lot. Two weeks later the other 5 were gone.

doing my part in stimulating the economy...

Going to step aside and let you have a turn.

[rickgthf]

Separately, export figures show decent demand for corn?

What about beans & bean meal? 

Soybeans= 2.2 mmt. vs. the trade's expectation of 725,000-1.40mmt

Soybean meal= 414,300 mmt. vs. the trade's expectation of 75,000-200,000mmt.

 Isn't 2.2 MMT bigger than 1.4 MMT, isn't 414,000 bigger than 200,000 MMT?

  Just asking.

[illinifarmer]

Yes it is Rick they just don’t care.  Was a great article I read the other day form a trader.  Basically saying why would we pay farmers anymore than we have to.  New crop sales and pre sold contracts with new crop coming in farmers have to sell to pay bills.  They all know this and refuse to run markets higher.  IMO when the final numbers come in you’ll see a big run up, unfortunately for a lot of us it will be far to late. Then of course they’ll pressure them lower for tax season and record planting acres after the new year. 

[wrightcattle]

Spoiler

Spoiler

It's 1 of the highest farm income years ever.... And 1/3 of that is from uncle Sam. 

Take the govt out and it's povertyville. 

So everyone in ag it seems knows how to farm the govt now.