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Senior Contributor

Floor Talk...from the B-team

At the close:

 

Dec corn: $5.46, down 11 1/4

Nov beans: $11.80, down 4

Dec wheat: $6.71 1/2, down 18.1/2

 

The surging Dollar and China's interest rate hike -- the first in 3 years -- were behind today's action, it sounds like. Read more here. 

 

Like Scott Shellady said in his Optioneye report here in Marketing Talk today, there's a lot of potential upside in the wheat market. Production continues to lag and demand continues to rise. Plus, there could be some major upside momentum building there if the market's watching the weather in the Plains right now. My old neck of the woods is really hurting for some moisture. The wheat's looking pretty rough in spots. Read more on that here

 

Another day, another dollar (hopefully!). Thanks for bearing with the B-Team today! Stay safe out there!

 

Jeff

 

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At 1:00 PM

 

Light losses from earlier in the day's session have turned sharp in late Tuesday trading, with corn, soybeans and wheat lower by double digits in early afternoon trading.
In late-session trading, December '10 corn futures were 14 1/2 cents lower at $5.42 3/4 per bushel, while December wheat was 20 1/2 cents lower at $6.69 1/2, according to Barchart.com. November soybeans were 10 1/2 cents lower at $11.73 1/2 per bushel.

 

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At 10:00 AM:

 

Losses have trimmed after a lower start:

 

 

  • December corn's sitting at 2 1/4 cents lower at $5.55 per bushel
  • November beans are 1/4 cent lower at $11.83 3/4
  • December wheat is 6 1/4 cents lower at $6.83 3/4

 

 

One analyst says "Chart watchers would like to see the December contract fill the huge gap down to $5.28/bushel" on the continued strength in the Dollar. Sounds like traders are just waiting on some news -- bearish or bullish -- for direction now that prices have adjusted to the latest news (namely harvest progress, export sales & the Dollar). What's that going to be? Could continued dry conditions for wheat farmers in the Plains be bullish enough to wheat to take corn and beans with it? 

 

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Good morning, everybody. Well, Marketeye's probably lounging around with a Bloody Mary somewhere right now, so I figured I'd try to take a stab at his reporting in here while he's away (Halloween is almost here, after all!).

 

Anyway, sounds like a strong Dollar is mostly to blame for today's expected lower start. Also, it sounds like Chinese officials are raising some key lending rates, which could trim consumption, therefore exports to China could see a slight drawback. But, like you all were chatting about yesterday in Scott Shellady's post, maybe this surging Dollar could stimulate more export demand if the price improves? What do you think? Is that enough to offset this rate hike in China to stimulate more demand for our grain overseas? 

 

The gents up the street at Freese-Notis Weather say they were a little surprised yesterday's USDA Crop Progress report didn't show us further along with harvest than it did. But, sounds like harvest progress is fairly well factored in to the trade anyway (or will be soon), right?

 

Speaking of that, everybody about got this year's crop in the bin? How's it panning out? I'm hearing corn yields are still lagging a bit, but beans look awfully nice. But, getting harvest wrapped up before opening weekend of pheasant season is enough to make a lot of folks pretty happy, it sounds like.

 

I may not be sitting where all the action is in Chicago, but I'll try to update here throughout the day. Don't shoot the messenger!

 

Jeff

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Veteran Contributor

Re: Floor Talk...from the B-team

Never saw a pheasant here all fall in Central Ia.  Most crops out in this area, beans and corn were both much below average.

This crop should sell for a premium, all corn with no artificial drying, both corn and beans harvested with low moistures, so more protein/starch per bushel.  Probably the best quality crop produced ever. 

This week's shake out will make Hardnox's sell look great.  

 

Elevators here had no trouble with storage, but what are the areas to the north doing will all their crops and large carryovers?  I would like to sell, but where is the grain going to come from to fill the needs next summer?  China was brilliant in the purchases earlier this year.  Eleven dollar beans are still a bargain, not near the top range of the last three years.

 

The only big problem, there are so many ponzi schemes in this country...banks, government. businesses and today even churches...pretty soon the fan can not handle all the s--- being thrown at it.

 

I see the Dems are sending out the senior crowd $250 each....do those checks come with a ballot?

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