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Senior Contributor

From the floor December 29

At the close:

The March corn futures settled 3/4 of a cent higher at $6.24. The March soybean contract finished 10 cents lower at $13.77. The March wheat futures settled 1 cent higher at $7.99 1/4. The March soybean meal futures ended $3.10 lower per short ton at $369.50. The March soyoil futures settled $0.41 lower at $56.98.


In the outside markets, the NYMEX crude oil is $0.38 per barrel lower, the dollar is lower, and the Dow Jones Industrials are up 43 points.

 

Mike

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At mid-session:

The March corn futures are 3/4 of a cent lower at $6.22 1/2. The March soybean contract is 5 3/4 cents lower at $13.81 13/4. The March wheat futures are 1/4 of a cent higher at $7.98 1/2. The March soybean meal futures are $1.20 lower per short ton at $371.40. The March soyoil futures are $0.39 lower at $57.00.


In the outside markets, the NYMEX crude oil is $0.32 per barrel lower, the dollar is lower, and the Dow Jones Industrials are up 29 points.

 

Notice that profit-taking, though occurring, has not taken a big bite out of these markets. Does this mean the real foundation of the markets are weather and supply/demand? Just a thought.

 

 

Mike

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At the open:

The March corn futures opened 3 1/4 cents lower at $6.20. The Jan. soybean contract opened 7 1/2 cents lower at $13.79 1/2. The March wheat futures are 8 1/2 cents lower at $7.90. The March soybean meal futures opened $1.60 lower per short ton at $371.00. The March soyoil futures opened $0.29 lower at $57.10.


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 45 points.

 

Markets are seeing some profit-taking by the funds. One analyst says, ""A little profit taking today as month and year end looms ahead but support has selling at a minimum as drought in Argentina continues with no measurable rain thru the weeks end . Also Mexico was in for 120,000 metric tons of corn and China bought 120,000 metric tons of beans today showing prices still look good to them," Hannagan says.


Mike

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At 9am:

USDA announced Wednesday that Mexico bought 120,000 metric tons of U.S. corn for 2010/11 delivery. Also, 120,000 metric tons of U.S. soybeans were sold to China for 2011/12 delivery.

 

Mike

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At 6:45am:


Early calls: Corn 1-2 lower, soybeans 5-7 cents lower, and wheat 2-4 cents lower.


Trackers:

Overnight grain markets=Trading lower.

Crude Oil=$0.56 lower.

Dollar=Lower.

Wall Street=Seen opening higher. However, there is a lack of economic or corporate news.

World Markets=Higher.

 

 

Weather Talk: A winter storm is expected to hit the northwestern part of the Midwest Friday. Further south, in Argentina, continued hot & dry conditions will pressure that country's corn and soybeans. Next week, cooler weather and possibly some rain is expected for Argentina. However, that cooler/wetter pattern isn't expected to last long.

 

The market seems to have built this Argentine weather in and is moving on to something else. What say you? Is this still a weather market? I'm hearing that the funds could do some end-of-the-year profit-taking the rest of the week.

 

 

More in a minute,


Mike

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3 Replies
Veteran Contributor

Re: From the floor December 29

Crude prices are very supportive to grains, short term.  It looks like we are headed for another 2008.  High gasoline prices brought down the economy in 08, and it will do it again.   I don't see any relief for housing prices.  The guy punching the clock just doesn't have the money to make payments even at these prices.   If gasoline doesn't pull back here....I should be buying puts on the S&P. It is such a two edge sword.  Higher crude will lead to higher grains.  Weather problems will lead to high grains.  But, the US economy can not handle much price stress, wages are not inflating.   So I guess I am looking at the price at the pump for signs of the first fault line.   We are going to see how global the economy is.  I actually think there is a small possibility in the next decade that you start to see grain production go the way of pork production.  ABC(ADM, Bungee, and Cargill) start to contract acres, provide all the seed, fertilizer, chemicals and get all the crop.

If corn can hit $5 in 1996, what would be an equivalent high in 2011?

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Senior Contributor

Re: From the floor December 29

$8.50 Corn, $20.00 Soybeans

 

New crop 2011, $7 corn, $16.50 soybeans

 

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Veteran Contributor

Re: From the floor December 29

Red, I will have everything sold before it gets to those prices.

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