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Senior Contributor

From the floor December 14

At the close:

The March corn futures settled 1 1/4 cents lower at $5.87 1/4. The Jan. soybean contract settled 6 1/4 cents lower at $12.96. The March wheat futures ended 17 cents lower at $7.63 1/4. January soybean meal futures finished $0.60 per short ton lower at $342.20. The Jan. soyoil futures contract closed $0.36 lower at $55.09.


In the outside markets, the NYMEX crude oil is $0.25 per barrel lower, the dollar is lower, and the Dow Jones Industrials are up 62 points.

 

One trader says, "Really more of a liquidation trade more than anything today.  Wheat still reacting to better weather in Australia and I guess the Middle East, but mostly liquidation selling.  Corn and Soybeans seemed to be more a choppy affair.  I think mostly liquidation selling in those markets, but both held well.  Both markets are trying to show a breakout higher and so they held better than Wheat.  Soybeans look like they are completing a bull flag and corn broke some pretty strong resistance at about 575 march yesterday, so we saw more even sided spec interest there."



Separately, the Federal Reserve says the U.S. economy, despite some uptick, is not out of the woods yet. Therefore, it will keep interest rates low and change little, in the way of its plan to buy $600 billion worth of Treasuries to help prop up the economy. This news raised the Dollar, Tuesday.

 

 

Mike

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At mid-session:

The March corn futures are 2 1/2 cents lower at $5.86. The Jan. soybean contract is 3 cents lower at $12.99 1/2. The March wheat futures are 18 1/2 cents lower at $7.61 3/4. January soybean meal futures are trading $0.70 per short ton higher at $343.50. The Jan. soyoil futures contract is $0.33 lower at $55.12.


In the outside markets, the NYMEX crude oil is $0.17 per barrel higher, the dollar is lower, and the Dow Jones Industrials are up 69 points.

 

There have been some marketwatchers that believe the commodities are going back to trading fundamentals, less outside market influence. Well, this morning, the outside markets have turned from unfavorable to favorable for grain prices. But, still no change in price direction for the markets. So, maybe the outsides and the grains are decoupling.

 

Mike

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At the open:

The March corn futures opened 3 cents lower at $5.85 1/2. The Jan. soybean contract opened 2 cents lower at $13.25. The March wheat futures opened 10 3/4 cents lower at $7.69 1/2. January soybean meal futures are trading $1.70 per short ton higher. The Jan. soyoil futures contract opened $0.35 lower at $55.10.


In the outside markets, the NYMEX crude oil is $0.39 per barrel lower, the dollar is higher, and the Dow Jones Industrials are up 61 points.

 

It looks like the Dollar is strengthening, buying has slowed in the grain pit, and the outside markets are unfavorable, all pressuring grain prices Tuesday.

 

Mike

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At 7:20am:

There seems to be a lot of 'buying elsewhere'. For example, for the first time, in December,  Japan is looking to buy Australian wheat. Also, South Korea announced Tuesday that it will buy 205,000mt of South American and Indian soymeal.

 

Also, how do you prevent speculation in ag markets? China is going to boost agricultural market oversight and prevent speculation, a gov't official said Tuesday during a radio interview.

 

 

Mike

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At 7am:


Early calls: Corn 1-2 cents lowr, soybeans 1-2 cents higher, and wheat 2-4 cents higher. Plus, the outside markets are favorable, this morning.


Trackers:

Overnight grain markets=Trading mostly higher.

Crude Oil=Unchanged.

Dollar=Lower.

Wall Street=Seen trading higher, ahead of the Fed's monetary policy meeting. Any sign the Fed sees an improving economy will boost the Dollar. Also, retail sales numbers will be released today. 

World  Markets=Higher.

 

 

 

More in a minute,

 

Mike

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Senior Contributor

Re: From the floor December 14

Could you clarify the statement, "For example, for the first time, in December,  Japan is looking to buy Australian wheat."

 

As far as I know Japan is a regular buyer of Aussie wheat. We talking about just the month of December? If that is the case the explanation may have to do with the West Coast being maxxed out on Pacific Rim elevation capacity for export, and the barging system is closed down for 3 months on the Columbia/Snake rivers for a similar class of wheat.

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Senior Contributor

Re: From the floor December 14

Yep, first time this December.

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