From the floor January 28

[marketeye]

Note: Today's marketing meetings seem different. Not a bad different, just different. There seems to be a more business-like tone to them. What do you think? With a video, here's a story I wrote about a recent meeting I attended.

Here's the link:  http://bit.ly/fmTdjX

Mike

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At the close:

The March corn futures settled 6 3/4 cents lower at $6.44. The March soybean contract ended 1 1/4 cents lower at $13.98.  The March wheat futures settled 20 1/2 cents lower at $8.25 3/4. March soybean meal futures settled $0.40 lower per short ton at $377.00. The March soyoil futures closed $0.14 lower at $57.27.

In the outside markets, the NYMEX crude oil is $3.67 per barrel higher, the dollar is higher, and the Dow Jones Industrials are down 163 points, shaken from its 29-month high.

Mike

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At mid-session:

The March corn futures are 1 3/4 cents higher at $6.52 1/2. The March soybean contract is 12 1/4 cents higher at $14.11 3/4.  The March wheat futures are 11 1/4 cents lower at $8.35. March soybean meal futures are $3.60 higher per short ton at $381.00. The March soyoil futures are $0.12 higher at $57.53.

In the outside markets, the NYMEX crude oil is $3.58 per barrel higher, the dollar is higher, and the Dow Jones Industrials are down 150 points.

Street protests in Egypt are slamming the Dow, pushing up crude oil prices, and offering support to the grains.

Meanwhile, one analyst says, "China bought record amounts of soybeans this week and beans should lead the charge. The only thing that has been holding them back to this point has been the beneficial rain falling in Argentina. With this demand for soybeans prices need to RALLY to slow down demand. Take a look at new crop bean sales vs. last year. And the funny thing, last year was a record."

Mike

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At 10am:

Soybeans turn higher, trading up 17 cents at $14.17. March corn is now up 5 3/4 cents at $6.56 1/2, and March wheat remains 6 cents lower at $8.40.

Regarding today's market, one analyst is saying, "Civil unrest in Middle East countries, with over double-digit food inflation and riots in Egypt today, after the Tunisian government was over-thrown recently, have strenghthened the grain markets. This all followed by grain-buying by every small, needy country in that region. This activity has funds buying today. Corn and beans are leading the rally, as the Egyptian riots today fueled sharply higher crude oil prices pulling corn-based ethanol and soyoil based bio-fuel up. After wheat prices, yesterday, hit last years contract highs on concern over political issues and demand, a higher open led to selling as funds bought corn and beans and sold wheat as a hedge."

Mike

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At the open:

The March corn futures are 4 cents higher at $6.54 1/2. The March soybean contract opened 2 1/2 cents lower at $13.97.  The March wheat futures opened 4 cents lower at $8.42 1/4. March soybean meal futures opened $0.90 higher per short ton at $378.20. The March soyoil futures opened $0.07 higher at $57.45.

In the outside markets, the NYMEX crude oil is $1.40 per barrel higher, the dollar is higher, and the Dow Jones Industrials are down 41 points.

Mike

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At 8:16am:

USDA announced Friday that private exporters reported the following activity:

--Export sales of 151,638 metric tons of corn for delivery to Japan during the 2010/2011 marketing year; and

--Export sales of 110,000 metric tons of soybeans for delivery to China during the 2011/2012 marketing year.

U.S. soybean sales to China are up almost 12% vs. a year ago. Shipments are up 7.5% over a year ago. China has purchased 64% of all U.S. soybeans, this marketing year vs. 61% last year, at the same time.

Mike

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At 8am:

The U.S. fourth quarter Gross Domestic Product data, announced Friday, came in lower than the trade expected. The government reported the GDP rose by an annualized 3.2%, below forecasts of 3.5%. The U.S. Dollar has firmed off of this report, due to some investors finding some strength in the report.

I'm already being affected by that meeting I wrote about above. It was said, at that meeting, the GDP is the 'river' in which a farmer's revenue runs out of. So, it's important for farmers to follow the GDP. So, there you go.

By the way, there seems to be some profit-taking occurring in crude oil, today. That will add even more pressure to corn and soybean prices, analysts say.

Mike

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At 7:25am:

Early calls: Corn up 1-2 cents, soybeans 1-2 cents lower and wheat 1-2 cents lower.

Trackers:

Overnight grain markets=Traded mostly lower.

Crude Oil=$0.07 higher.

Dollar=Higher.

Wall Street=Seen opening flat ahead of this morning' fourth quarter Gross Domestic Products report.

World Markets=Mixed-to-lower.

[rightone]

some things....especially some Western World econ things.

egypt, yemen, tunisia....all the same actually...lot of young folks...NO real economy thus 20 to 40% unemployment etc..

And the afore are just a start on the Mideast NO real economy commonality.

Perhaps bearish from a demand side for most things ( yep plenty of people with NO money to buy things thus convert those to sustainable econ use etc etc.. )...oil and equities perhaps way over priced currently.

Pac Basin still good and will continue to be.

Pac Basin though is not near as influential on Western Markets as the Mideast and EU region is.

[DW11]

Hi Marketeye,

Thanks for all the information you provide.  You are one of my main sources for insight into market action on a daily basis.

I do have one request/suggestion for you.  You might consider adding to Friday's closing markets how each commodity did for the week.   I suspect others like me may be too busy or lazy to look it up for ourselves.  The weekly price action gives us a little more perspective on the longer term direction of the markets. 

Thanks for your consideration.

DW11