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Veteran Contributor

Floor Talk September 7

At 9:45am:
If you missed it, the USDA Weekly Export Sales Report, delayed one day due to the Labor Day Holiday, was released Friday. Here are the results:
 
Corn= 1.062 million metric tons vs. the trade’s expectations of between   400,000-1,250,000 mt.

Soybeans=  673,200 mt. vs. the trade’s expectations of between  200,000-1,000,000 mt.

Wheat=  379,800 mt. vs. the trade’s expectations of between 200,000-500,000 metric ton.
 
Mike
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At 8:55am:
 

 
In early trading, the December corn futures are 3/4¢ higher at $3.67. March futures are 3/4¢ higher at $3.79.


 
Nov soybean futures are 5¢ higher at $8.44.  Jan. soybean futures are 5¢ higher at $8.57.


 
Dec. wheat futures are 4 1/2¢ lower at $5.09.


 
Dec. soymeal futures are $3.50 per short ton higher at $317.50. Dec. soy oil futures 0.23¢ lower at 28.30.
 
In the outside markets, the NYMEX crude oil market is $0.52 lower, the U.S. dollar is higher, and the Dow Jones Industrials are 52 points lower.
 
Al Kluis, Kluis Advisors, says that the grain markets will maintain a choppy pattern, as harvest gets underway.
“The US is set to hit China with another tariff on yet another $200 billion worth of goods. Will China retaliate? Expect grain prices to remain choppy as we await the actual yield results of the US row crops,” Kluis stated in a daily note to customers.
 
Mike
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According to EIA data analyzed by the Renewable Fuels Association (RFA), ethanol production averaged 1.087 million barrels per day (b/d)—or 45.65 million gallons daily. That is a 17,000 b/d expansion over the prior week and a four-week high. However, the four-week average for ethanol production dropped back to 1.076 million b/d for an annualized rate of 16.50 billion gallons, the RFA press release stated Friday.
 
Stocks of ethanol tightened to 22.7 million barrels. That is a 1.7% decrease from last week and the smallest reserves in five weeks.
 
Imports of ethanol were 32,000 b/d, or 10.75 million gallons for the week. This was the second consecutive week—and the second time in 39 weeks—that imports were logged. Imports of ethanol the prior week were 8,000 b/d, or 2.35 million gallons for the week. (The latest export data is as of July 2018.), according to the RFA.
 
Mike
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Soybeans were lower overnight on concerns that the ongoing trade battle between the US and China will escalate after the comment period on further import tariffs on Chinese goods has expired. Analysts and investors expect the Trump Administration to move forward with the proposed tariffs on $200 billion worth of items from the Asian nation. China can't match those levies because it doesn't import that much in US goods, but it has said it will find ways to retaliate. Ethanol production, meanwhile, rose to the highest level in four weeks, though a report showed exports of the biofuel plunged 31% month-to-month in July. In weather news, the remnants of Gordon are making their way north, bringing excessive rain and flooding to several states in the Corn Belt. Check out today's 3 Big Things for all the details.  

 

West Texas Intermediate = up 0.1%.

Brent Crude = up 0.4%.

Dollar = down 0.1%.

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

World Markets = Global stocks mostly lower overnight.

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Veteran Advisor

Re: Floor Talk September 7

"Analysts and investors expect the Trump Administration to move forward with the proposed tariffs on $200 billion worth of items from the Asian nation. China can't match those levies because it doesn't import that much in US goods." Hmmm isn't that something Smiley Surprised

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Veteran Advisor

Re: Floor Talk September 7

China’s position as America's largest banker gives it some political leverage. Now and then, China threatens to sell part of its debt holdings. It knows that if it does, U.S. interest rates would rise, slowing U.S economic growth.