Floor Talk, September 26, 2019
At the close:
At the close, the Dec. corn futures finished 1 3/4¢ lower at $3.72 1/2. March corn futures ended 3/4¢ lower at $3.84 3/4.
Nov. soybean futures closed 3/4¢ lower at $8.88 1/4. Jan. soybean futures finished 1/2¢ lower at $9.02 1/2.
Dec. wheat futures settled 7¢ higher at $4.84 1/4. December soymeal futures closed $2.00 per short ton lower at $295.60. December soy oil futures closed $0.03 lower at 29.17¢ per pound. In the outside markets, the NYMEX crude oil market is $0.06 per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 29 points lower.
In cased you missed it, the USDA announced Thursday its weekly Export Sales Report.
On Thursday, the USDA’s Weekly Export Sales Report shows strong soybean figures.
Corn= 494,000 metric tons vs. the trade’s expectations of between 600,000-1,300,000 mmt.
Soybeans= 1.03 mmt. vs. the trade’s expectations of between 800,000-1,300,000 mmt.
Wheat= 283,200 mt. the trade’s expectations of between 200,000-500,000 mt.
Soybean meal= 164,300 mt. the trade’s expectations of between 200,000-550,000 mt.
China was leading soybean buyer at 391,400 mt.
In early trading, the Dec. corn futures are 1 3/4¢ lower at $3.72 1/4. March corn futures are 3/4¢ lower at $3.84 1/2.
Nov. soybean futures are 3¢ higher at $8.92 1/4. Jan. soybean futures are 3 1/4¢ higher at $9.06 1/2.
Dec. wheat futures are 7¢ higher at $4.84 1/4.
December soymeal futures are $0.80 per short ton higher at $298.40. December soy oil futures are unchanged at 29.20¢ per pound.
In the outside markets, the NYMEX crude oil market is $0.39 per barrel lower, the U.S. dollar is lower, and the Dow Jones Industrials are 35 points lower.
On Wednesday, private exporters reported to the U.S. Department of Agriculture export sales of 257,000 metric tons of soybeans for delivery to China during the 2019/2020 marketing year.
The marketing year for soybeans began Sept. 1.
Al Kluis, Kluis Advisors, says that the markets are trying to push through resistance levels.
“Soybeans are finding a little bit of resistance as harvest is just getting underway. The close in the corn market on Tuesday was very promising. We could continue to see December corn futures push towards the gap between $3.88 and $3.92. The President made a comment on Wednesday that a trade deal with China could be coming sooner than later. This should help keep support under the grain prices,” Kluis told customers in a daily note.
What say you?
Jack Scoville, PRICE Futures Group, says that the soybean market is reacting positively to China’s recent purchase of U.S. soybeans.
“Corn is down on the bad weekly export sales. Soybeans sales were good and that is supporting, but the funds are trying to sell the rally. Trump keeps talking up Chinese buying and says a deal could come soon, but we want a deal before getting too excited anymore,” Scoville says.
Scoville adds, “The harvest weather looks wet, but not cold enough in the Midwest to threaten crops. Montana and out that way and into Canada are seeing the growing season come to a close. Otherwise, investors are taking into account that China is on holiday next week for the 70th anniversary of Communism in that country,” Scoville says.