Floor Talk September 21

[Tony_Dreibus]

Soybeans were again lower in the overnight session after a double-digit surge the prior day -- it seems the overnight investors are more concerned about the ongoing trade spat with China and expectations for record US and global crops than their US counterparts. Beans were down about 6 cents, corn was up a penny and wheat was trading on either side of unchanged. Export sales were strong as corn, beans and wheat all beat expectations last week. In weather news, excessive rainfall in southern Minnesota, southeastern South Dakota and northern Iowa is causing flooding, according to the National Weather Service, and likely will lead to harvest delays. Check out today's 3 Big Things for all the details. 

West Texas Intermediate = up 0.8%.

Brent Crude = up 1.1%.

Dollar = up 0.2%.

Wall Street = U.S. stock higher pre-market.

World Markets = Global stocks higher overnight.

[roarintiger1]

Did anyone notice lately the massive price cuts at the grocery stores and restaurants due to the low prices farmers are receiving?    Nope......me neither.  End users are happy.

[Hobbyfarmer]

Brazil and Argentina are both in the USA bean market, the brass tacks boil down is Chinese buying.

Kind of not cost effective to get your raw commodities in such a round about more middlemen and freight costs way.

The down side for us is increased soys planted world wide. 

Agriculture hates a void and does not leave profitability go on very long.

[rayfcom]

Please tell us how many food stores you surveyed with respect to the price of their food products ? And of course you do realize that any change of price in the Futures markets for commodities can take up to six months before it effects the retail price of the commodity as sold to the public in process form. I suggest that any decline in retail food prices you are seeing now is a result of the price decline in commodities that occurred in the Spring of this year, and has no bearing on the present price dynamic.

A point about yesterday's big rally in corn prices in the Futures market : open interest in the front month December contract actually fell by about 3,000 contracts from the prior day. That is rather unusual for a day when prices surged by over ten cents. Such a move should have drawn in new interest in the commodity, and the absence of new participants leads us to question the degree to which investors are willing to support the upmove in corn prices. The general rule is that if open interest does not increase to support a move in prices, then the move is transitory in nature and the likelihood increases of resuming the trend before the big  move. 

I remain very wary of the price action in corn of yesterday and today.

[Farmerjoe79]

Ok futuretrader 92😁

[roarintiger1]

ray, Don't know about you, but I eat everyday........and sometimes, more than once.   

[rayfcom]

Remember, you are what you eat. 

[Hobbyfarmer]

• "Remember, you are what you eat. Smiley Very Happy"

Then I'm "A1"

[rayfcom]

A1 for sure, in more ways than one !

Nice speaking with you !