From the floor January 14

[marketeye]

At the close;

The March corn futures settled 6 1/4 cents higher at $6.48 3/4. The March soybean contract closed 6 1/2 cents higher at $14.22 1/2.  The March soybean meal futures ended $4.50 higher per short ton at $388.10. The March soyoil futures settled $0.44 lower at $57.27.

In the outside markets, the NYMEX crude oil is $0.12 per barrel higher, the dollar is lower, and the Dow Jones Industrials are up 52 points.

One analyst says, "Well, it was lower on some overnight profit-taking, but most of the selling came after China announced another interest rate increase and reserve requirements on banks.  Funds seem to be buying the break in all markets, I have not heard of a lot of commercial action.  Though they both closed higher on fund-buying, soybeans stayed a little weaker than corn, with the forecasts for some very beneficial rains to move across most of the growing areas of Argentina this weekend and early next week. Also, lower-than-expected NOPA crush, put some pressure on soybeans.  I am not really understanding why Wheat is so weak although some moderation in temperatures is expected here.  Must be the demand which I admit has not been real strong lately.  But we could get some heaving of the soils out in the Plains which is just as damaging."

Mike

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At mid-session:

The March corn futures are 2 cents lower at $6.40 1/2. The March soybean contract is 4 1/4 cents lower at $14.11 3/4.  The March soybean meal futures are $1.60 lower per short ton at $382.00. The March soyoil futures are $0.56 lower at $57.15.

In the outside markets, the NYMEX crude oil is $0.05 per barrel higher, the dollar is unchanged, and the Dow Jones Industrials are up 35 points.

Mike

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At the open:

The March corn futures are 3 3/4 cents lower at $6.38 1/2. The March soybean contract opened 8 cents lower at $14.08.  The March soybean meal futures opened $2.20 lower per short ton at $381.30. The March soyoil futures opened $0.60 lower at $57.10.

In the outside markets, the NYMEX crude oil is $0.53 per barrel lower, the dollar is lower, and the Dow Jones Industrials are down 8 points.

Profit-taking and unfavorable outside markets are sinking the grain prices, analysts say.

Mike

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At 7:32am:

Argentine Update: My Argentine contact says, "The first week rained in the mainly regions the cultivation - provincias
(Buenos Aires, Cordoba an Santa Fé, that represent 80% the crops)in
average 25 to 50 mm, but the problem persists."

Mike

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At 7am:

Early calls: Corn up down 2-4 cents, soybeans down 3-5 cents, and wheat 7-9 cents lower.

Trackers:

Overnight grain markets=Trading lower.

Crude Oil=$0.87 lower.

Dollar=Higher.

Wall Street=Seen opening lower. Despite JP Morgan and Intel's 4th Quarter earnings beat expectations, but since China announced a tightening of bank lending, the stock market is seen opening lower.

World Markets=Lower.

More in a minute,

Mike