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marketeye
Veteran Advisor

From the floor August 25

At the close:

The Dec. corn futures ended 1/2 of a cent higher at $7.43 1/2. The Nov. soybean contract closed 3/4 of a cent lower at $13.92 3/4. The Dec. wheat futures closed 10 1/2 cents higher at $7.87 3/4. The Dec. soyoil futures closed $0.20 lower at $56.13. The Dec. soymeal futures closed $1.00 per short ton higher at $375.20.

 

In the outside markets, the NYMEX crude oil is $0.04 per barrel lower, the dollar is higher and the Dow Jones Industrials are down 156 points.

 

Mike

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At mid-session:

The Dec. corn futures are trading 1/2 of a cent higher at $7.43 1/2. The Nov. soybean contract is 1/4 of a cent higher at $13.93 1/4. The Dec. wheat futures are trading 10 cents higher at $7.87 1/4. The Dec. soyoil futures are trading $0.03 lower at $56.30. The Dec. soymeal futures are trading unchanged at $374.20.

 

In the outside markets, the NYMEX crude oil is $0.08 per barrel lower, the dollar is higher and the Dow Jones Industrials are down 149 points.
 
One analyst says, "I agree, the market looked ready to fall out of bed but held, with Wheat leading the way back.  I am sure this week's crop tour and its less than stellar results is helping.  I think the news that So. Minnesota crops are not that good is a little surprising to me, I thought that area had been better.  But the buy side is really backing away, at least in cash markets.  They just don’t want to pay these prices.  The only thing I can think of is that people are buying the wheat as it is cheap to corn. Plus, you still have lots of weather issues for the wheat out there in Texas and Oklahoma.  I see no real news and have not heard that much except that some advisory services apparently have been telling farmers to let go of a little corn up here.  It is a pretty low volume day from what I see. So, I am sure that is part of it as well.  No reason to push it big either way, and no real reason to push it down yet, even though one might be developing.  I think maybe we are hearing the worst on the supply side for now with the tour. And if we look at demand after today, maybe we see more softness.  But, the strength today has a lot of heads scratching and we will see if the ag analysts looking for price pressure are correct. I kind of hope so, as I have buying to do and I need lower prices to get it done."

 

Mike

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At the open:

The Dec. corn futures opened 6 1/4 cents lower at $7.36 1/2. The Nov. soybean contract is 7 cents lower at $13.86 1/2. The Dec. wheat futures opened  5 1/2 cents lower at $7.71 3/4. The Dec. soyoil futures opened $0.38 lower at $55.94. The Dec. soymeal futures opened $0.20 per short ton lower at $372.30.

 

In the outside markets, the NYMEX crude oil is $0.76 per barrel lower, the dollar is higher and the Dow Jones Industrials are down 111 points.

 

Warren Buffet is pumping $5 billion into Bank of America and that is sending the stocks lower. Meanwhile, profit-taking is hurting the grains and soybeans Thursday.

 

Mike

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At 8:25am:

--International Grains Council Thursday lowered world corn production by 10 million metric tons to 849 million metric tons, due to the lower U.S. output estimates.

--Japan is seeking 250,000 mt of feed wheat from Aust., Canada, U.S., and France.

--Did you miss it? EIA said Wednesday that the U.S. will surpass Brazil as the world's largest ethanol exporter in 2011. Higher sugar prices and lower cane production in Brazil, will send more U.S. ethanol to South America.

 

 

Mike

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At 7:35am:

USDA released positive weekly corn export sales, neutral-to-friendly soybean sales, and weak wheat exports.

 

Corn=536,100 metric tons vs. the trade looking for 350 to 700,000 metric tons (mt).

Soybeans=657,600 mt vs. the trade expectations of 400 to 1.1 million.

Wheat=347,100 mt vs. the trade expectations of 400,000-950,000 mt.

 

Mike

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At 6:35am:
Early calls: Corn, soybeans and wheat down 6-8 cents.
 
Trackers:
Overnight grain, soybean markets=Trading lower.
Crude Oil=$0.52 higher.
Dollar=Lower.
Wall Street=Seen trading higher with cautions on the upcoming weekly jobless claims report due out today. Gold plunged 5% yesterday, equivalent to a 600 point drop on the Dow Jones Industrial Average.
World Markets=Higher.
 
 
More in a minute,
 
Mike

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5 Replies
marketeye
Veteran Advisor

Re: From the floor August 25

On Thursday, the U.S. Grains Council mentioned in its weekly newsletter that U.S. corn has a new competitor in Columbia. Canadian feed wheat is the new upstart in Columbia, due to a new trade agreement between the two countries signed August 15th.

In the newsletter it states, "U.S. Grains Council trade sources indicate that Colombian buyers have placed orders for 125,000 mt of Canadian feed wheat in the 10 days since the agreement went into effect. These imports will further erode U.S. corn sales opportunities in this vital corn market."

 

FWIW,

 

Mike

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dafeeder
Veteran Contributor

Re: From the floor August 25

Wheat pasture as a feed source is slowly slipping away.

 

http://droughtmonitor.unl.edu/

 

 

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rightone
Senior Contributor

Re: Wheat, looks like

alot of the what were corn pivots in the SW are going to winter wheat  this year.

( specially those with marginal soil / marginal water or both )

 

Matter of fact quite a few of em already are seeded.

 

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tim7781
Frequent Contributor

Re: Wheat, looks like

the corn crop in Minnesota is slowly slipping in yield. average at best here in southeastern minnesota

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dafeeder
Veteran Contributor

Re: Wheat, looks like

They might hit the jackpot this year if it doesn't rain on the dry land areas soon.  Actually a lot of dry land areas need more than a 1 inch rain to help much at this point.  It's hard to imagine how dry it is in some areas in NW Oklahoma.

 

Some cow/calf ranchers are selling everything except their heifers just to try in get through the drought.

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