From the floor December 2

[marketeye]

After the close:

PFGBest.com releases eatimates for the Dec. 10 USDA Report:

2010-11 U.S. Carryover
Corn = 815 million bushels                                
Soybeans = 180 million bushels                                                                
Wheat= 835 million bushels

2010-11 World Carryover
Corn = 127.00 metric tons                             
Soybeans = 61.00 metric tons                           
Wheat = 170.00 metric tons

Mike

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At the close:

The March corn futures settled 10 3/4 cents lower at $5.55 1/2. The Jan. soybean contract closed 3 1/4 cents lower at $12.79 3/4. The March wheat futures settled 9 cents higher at $7.06 1/2. The Jan. soyoil futures contract settled $0.23 higher at $52.84. The Jan. soymeal futures contract closed $2.80 per short ton lower at $345.70.

In the outside markets, the NYMEX crude oil is $1.25 per barrel higher, the dollar is lower, and the Dow Jones Industrials are up 107 points.

One trader says, "Wheat is a weather market, and now it is cold here in the Midwest and will get cold in the Great Plains to increase potential for winterkill on an already crappy looking crop.  Just a little more to beat on the poor winter wheat this year.  Still raining in Australia, and getting very cold in Russia and Ukraine to put some winterkill heat on the crops there

Corn and soybeans more of a choppy affair, with soybeans getting support from the export sales and both getting support from dollar weakness.  Corn so far is holding a pretty strong test of short term support around 560 March, but that is about all.

It is a quiet day, at least for me.  I think the overall tone is boring to higher for the rest of the day as anyone who wanted to sell something has now had the chance.  Soybeans are holding a short term resistance area at 1290 Jan, but might need to give it a stronger test before moving lower.  Corn barely took out the high of yesterday and could not do anything with it and I got targets of 570 to 573 for the first move higher.  That implies that some short term profit-taking is possible.  Longer term, though, the supply and demand side of the market still looks price positive, so any setback that might come should be short lived if it comes at all," he says.

Mike

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At the open:

The March corn futures opened 1 1/2 cents lower at $5.65. The Jan. soybean contract opened 1 1/2 cents lower at $12.81. The March wheat futures opened 10 cents higher at $7.50. The Jan. soyoil futures contract opened $0.14 lower at $52.47. The Jan soymeal futures opened $1.40 per short ton lower at $347.00.

In the outside markets, the NYMEX crude oil is $0.32 per barrel higher, the dollar is lower, and the Dow Jones Industrials are up 84 points.

The outside markets are favorable for the grains. Perhaps downward pressure will subside?

Mike

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At 7:45am:

USDA Weekly Export Sales were friendly-to-bullish Thursday.

For corn, USDA says sales were 758,100 metric tons and the trade expected between 500-700,000 mt, soybeans 1.401 million mt, above the trade expectations of 1.0-1.3 million. Wheat sales were 704,200 mt, in-line with trade expectations of 500-700,000 mt. USDA says soybean meal sales were 133,800 mt, within the trade range of 150-225,000 mt. And soyoil sales were 32,100 metric tons Thursday.

Mike

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At 7:10am

News (or noise?)=Japan bought 209,297 metric tons of U.S. wheat Thursday.

Russia announced it will halve its 2011 pork imports v s. last year. The CME Group announced that November's average daily commodities contract volume was 1.3 million, up 47%.

For those keeping score at home, the Export Sales will be out in a few minutes. Here are the trade estimates: Corn at 500 to 700,000 Metric Tons (MT), soybeans at 1,000 to 1,300 MT, soybean meal at 150 to 225,000 MT, and wheat at 500 to 700,000 MT.

Mike

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At 6:45am:

Early calls: Corn down 1-2 cents, soybeans 3-5 lower and wheat up 4-6 cents.

Trackers:

Overnight grain markets=Trading mostly lower.

Crude Oil=$0.10 higher.

Dollar=Lower.

Wall Street=Seen trading higher as investors await housing and labor market reports.

World  Markets=Higher.

More in a minute,

Mike

[kenj3063508]

Priced the last of my 2010 KCWheat on TUESDAY

Up 50 cents yesterday.....up double digits again today.

All you wheat guys can thank me later.....         KenJ