Floor Talk September 21, 2020
At midsession, the Dec. corn futures are 9 1/4¢ lower at $3.69 1/4. March corn futures are 9¢ lower at $3.78 3/4.
Nov. soybean futures are 17 1/2¢ lower at $10.26 1/2. January soybean futures are 16¢ lower at $10.31 1/4.
Dec. wheat futures are 20 3/4¢ lower at $5.54 1/4.
Dec. soymeal futures are $3.20 per short ton lower at $338.90. Dec. soy oil futures are $0.76 cent lower at 34.38¢ per pound.
In the outside markets, the NYMEX crude oil market is $1.92 per barrel lower at $39.19. The U.S. dollar is higher, and the Dow Jones Industrials are 762 points lower.
Peter J. Meyer, S&P Global Platts, head of grain and oilseed analytics, says that it's not a good start for any market today, equities or commodities, so grains are along for the ride.
“There are some fears that any sort of additional COVID stimulus will now take a back seat until the election, as elected officials turn their attention to a Supreme Court nominee. Without the stimulus, many markets, including oil, will be nervous. In grains and oilseeds specifically, if you include last week’s trading with the Commitment of Traders report, funds are now long everything, including wheat, into harvest and that adds to the nervousness. Still a good demand market in soybeans, which has dragged up corn, but with the combines starting to roll and some speculative length in the market, it feels like a breather is required,” Meyer says.
Meyer added, "I would add that the two-week weather window is dry, which could increase the speed of harvest. Like almost everyone, farmers want 2020 to be over, the sooner the better."
What say you?
Re: Floor Talk September 21, 2020
I`d worry about anything that goes straight up day after day, so long as it`s 2 steps forward and only one step back 🙂 But, there`s going to be some harvest pressure, there`s incentive to store, but after being down so long it`s understandable to grab a handful of cookies and reward the market.