At 2:15pm:
Here it comes: I'm on the 14th floor of a building in downtown Chicago. Out of my window, I'm now seeing bigger snowflakes. Will we get 20-inches, like they are calling for, I'm not sure. Trucks with sand are now traveling up and down Michigan Ave. Plus, my wife just called, from the grocery store, and swears the food prices are going up by the minute. The store parking lot was so full she had to circle the block a few times before any spot came open. If we get the worst snowstorm since 1967, I'll show you that. But, here is what downtown Chicago looks like now:
The haziness is the snow. As you can see, the flags are standing straight out, but the winds are not 60-mph, like we're suppose to have. I'm not sure how his might impact the overnight's, perhaps not at all.
Mike
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At the close:
The March corn futures settled 6 1/2 cents higher at $6.66. The March soybean contract closed 27 cents higher at $14.40. The March wheat futures ended 5 1/2 cents higher at $8.35 1/4. March soybean meal futures settled $8.10 higher per short ton at $388.40. The March soyoil futures closed $0.84 higher at $58.72.
In the outside markets, the NYMEX crude oil is $1.42 per barrel lower, the dollar is lower, and the Dow Jones Industrials are up 142 points.
One analyst says, "The big snowstorm, now hitting the US Midwest, could be a double-edged sword. The states that get the bulk of the snow see a blanket protection for its wheat, as well as eventual needed moisture from the meltdown. But, some forecasts suggest the snows will miss up to 30% or more of the wheat that then will get hit with sub freezing temperatures and ice late in the system. This could support wheat prices late week."
Wheat Options Talk: One trader says, "In the wheat options pit, CSO's entered the order flow Tuesday for the first time. These are options on the underlying futures spreads, with strike prices based upon the likelihoood, or lack thereof, that the futures spreads will widen or contract to levels signified in one-cent intervals that reflect current and possible spread prices between various contract months in the wheat. Up until Tuesday, the wheat options had not particpated as much in this relatively new product (it was introduced last summer) as the corn and the bean options. But all that changed, as two large players spent the day sparring back and forth on the (July/Sep. -30 cent CSO). This out-of-tthe-money option is based upon the notion that the spread between the July and Sept. futures will or will not trade as much as 30 cents. The actual spread traded on Tuesday from 181/2 to 20 1/2."
Mike
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At 11:50am:
USDA Export Inspections Report shows friendly but not bullish numbers. Remember, this is a preview to Thursday's Export Sales report.
The weekly export inspection report put wheat inspected for near term export at 21.3 million bushels versus the four-week average of 19.7. "Certainly not a bullish signal but at best a friendly demand number leaving the potentially bullish psychology for larger demand to surface sitting out there," one analyst says. Bean inspections were 29.6 million bushels versus 43.1 the week prior and four-week average of 35. Corn inspections were 18.6 million bushels versus 26.5 the week prior and four-week average of 20. Corn and beans fall prey to the onset of the week long Asian lunar new year holiday beginning Wednesday, the analyst says.
Mike
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At mid-session:
The March corn futures are 4 cents higher at $6.63 1/2. The March soybean contract is 14 cents higher at $14.27. The March wheat futures are 2 3/4 cents lower at $8.38. March soybean meal futures are $4.40 higher per short ton at $384.70. The March soyoil futures are $0.38 higher at $58.28.
In the outside markets, the NYMEX crude oil is $0.79 per barrel lower, the dollar is lower, and the Dow Jones Industrials are up 107 points.
Mike
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At the open:
The March corn futures are 3 3/4 cents higher at $6.62 1/2. The March soybean contract opened 9 1/2 cents higher at $14.22 1/2. The March wheat futures opened 1/2 of a cent lower at $8.40 1/4. March soybean meal futures opened $3.00 higher per short ton at $383.40. The March soyoil futures opened higher.
In the outside markets, the NYMEX crude oil is $0.35 per barrel lower, the dollar is lower, and the Dow Jones Industrials are up 85 points.
Mike
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At 8:05am:
USDA announces Tuesday:
--120,000 metric tons of U.S. corn was sold to 'unknown' for 2010-11 delivery.
--110,000 mt of U.S. soybeans were sold to 'unknown' for 2010-11.
--20,000 metric tons of U.S. soy oil sold to China for 2010-11 delivery.
The 2010/2011 marketing year for corn and soybeans began September 1; soybean oil began October 1.
What do you think, is that 'unknown' corn buyer China?
Mike
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At 8am:
There is a lot of news coming out of China, this morning. Dow Jones Newswire headlines below:
--Despite weaker crush margins, China's demand for U.S. soybeans remains strong.
--China sees the need to maintain 95% self-sustainability in rice, corn, and wheat.
--An earthquake hit Taiwan this morning.
--Japan is seeking 183,640 mt of food wheat for March, April delivery.
--Egypt's ports are open. Also, new Trade Minister sees little change in Egypt's import policy.
Mike
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--At 6:30am:
Early calls: Corn down 1-2 cents, soybeans 2-4 cents higher and wheat 1-2 cents lower.
Trackers:
Overnight grain markets=Trading mostly lower.
Crude Oil=$0.75 lower.
Dollar=Lower.
Wall Street=Seen opening higher as investors focus more on corporate earnings and place Egypts uprisings on the back burner.
World Markets=Higher.
More in a minute,
Mike
