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Senior Contributor

From the floor January 26

At mid-session:

Corn is trading up 11 cents, soybeans up 8, and wheat 16 cents

 

FARMER TIP: At this Fargo, North Dakota meeting, the economist gave farmers this tip: Develop an "Interest rate adjustment fund". Set aside money right now for a 'guaranteed' rise in interest rates. For example, if there is a 500-point increase in rates, you could see a $100,000 increase in any loan that you are paying on. This economist is very worried farmers may not be setting aside some of their current profits, for a future 'rainy-day'. He says, "I guarantee you, that 'rainy day' will arrive in the form of higher interest rates.

 

 

 

Mike

---------------

At 10am:

USDA announced Wednesday Private exporters reported to the USDA export sales of 227,000 metric tons of soybeans for delivery to China. Of the total 60,000 tons is for delivery in 2010/2011 marketing year and 167,000 tons is for delivery during the 2011/2012 marketing year.

 

Mike

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At the open:

The March corn futures are 5 cents higher at $6.50 1/2. The March soybean contract is 1/4 of a cent higher at $13.76.  The March wheat futures are 11 cents higher at $8.49.


In the outside markets, the NYMEX crude oil is $0.03 per barrel higher, the dollar is lower, and the Dow Jones Industrials are up 35 points.

 

At this farmer meeting in North Dakota, a Purdue University economist says the problem with the lagging economy is a 'missing Dead Cat Bounce'. After previous recessions, the economy surged back with a 'dead cat bounce'. The housing market is the killer, he says. Without home construction, this economy will not recover. Also, he is encouraging farmers to pay attention to Gross Domestic Product (GDP). He says, "The GDP is the 'river' that fills farmers revenue cups." He says watch for Uhaul trucks on the highway. When you see more of them, you will see the economy and grain markets go even higher.

 

Mike

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At 6:45am:


Early calls: Corn up 3-5 cents, soybeans up 4-6 cents, and wheat up 7-9.


Trackers:

Overnight grain markets=Trading higher.

Crude Oil=$0.70 higher.

Dollar=Lower.

Wall Street=Seen opening higher after Pres. Obama's State of the Union speech last night included talk about improving the economy, freezing spending, and creating friendlier corporate taxes.

World Markets=Higher.

 

Note: Marketeye is speaking today in Fargo, North Dakota to a group of farmers. After a very late-night arrival last night, I found out this area has received about three-times as much snow as it normally gets. The snowbanks are big in Fargo. But, I love talking to farmers. So, today should be fun. I'll let you know what they say about more wheat, corn or soybean plantings, once all this snow melts.

 


More in a minute,


Mike

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5 Replies
Highlighted
Veteran Contributor

Re: From the floor January 26

Great interview with 'Short Trader'.    Very interesting.  Thanks.

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Veteran Advisor

Re: From the floor January 26

All that snow has been in the news north of you.

Winnipeg is preparing for what could be worse flooding than they endured just a few years ago when they set records.

Add to the snow is the saturated soils already in the area from all the rain they got last year.

As for marketing there is concern that planting will not be early or timely in the west as they wait for a heavier than normal snow pack to melt as well as warm up and dry out their ground.

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Senior Contributor

Re: From the floor January 26

jec22,

 

She is lively and passionate about trading. She is a fundamental trader. Those kind of traders are simply easier to understand vs. macro and technicians. However, I have had techies call them funnymentals.

 

Mike

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Senior Contributor

Re: From the floor January 26

Man, I hope you remembered to pack your wool Jockeys up there, Marketeye! 

 

That weather story's going to be a big one in that neck of the woods this year. Would be interesting to hear what the farmers there are doing, if they can do anything, to prepare for what could be a record flooding spring in the Red River Valley.

 

Here's a story on that from last week

 

Anyway, stay warm up there! I guess since you're not on the Floor today, prices are going to be moving up today, eh? Ha!

 

Jeff

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Senior Contributor

Re: From the floor January 26

Since Mike's shiverin' up in Fargo this morning, thought I'd throw in an update on today's trade or 2: Wednesday's CME Group opening finds corn, wheat and soybeans all trading higher, with wheat futures trading to almost 2 1/2-year highs on strong export demand.

In early session trading, nearby corn was 6 1/4 cents higher at $6.57 1/4 per bushel, while nearby soybeans were 3 cents higher at $13.77 1/2, according to Barchart.com. Nearby wheat was up 10 3/4 cents at $8.49 per bushel, though the $8.50 mark is expected to come and go on strong export demand.

 

Wednesday's CME Group opening finds corn, wheat and soybeans all trading higher, with wheat futures trading to almost 2 1/2-year highs on strong export demand.

 

Here's a little more on the wheat surge 

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