Grain analyst says CME Group should raise daily corn limits. Plus, he sees big cash/futures spread coming.
You can watch the video here: http://youtu.be/Tc6Q3JvNtaw
Mike
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At the close:
The Dec. corn futures settled 11 cents lower at $6.74 1/2. The Nov. soybean contract closed 16 1/4 cents lower at $13.72. The Sep. wheat futures are not settled yet, but last traded 3 3/4 cents lower at $6.91. The Dec. soybean meal futures contract settled $6.20 per short ton lower at $363.10 and Dec. soyoil futures ennded $0.53 lower at $56.95.
In the outside markets, the NYMEX crude oil is $0.44 per barrel lower, the dollar is lower and the Dow Jones Industrials are down 41 points.
Mike
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At mid-session:
The Dec. corn futures are trading 17 1/2 cents lower at $6.68. The Nov. soybean contract is trading 26 1/4 cents lower at $13.62. The Sep. wheat futures are trading 17 1/4 cents lower at $6.75. The Dec. soybean meal futures contract is trading $7.10 per short ton lower at $362.20 and Dec. soyoil futures are $1.17 lower at $56.31.
In the outside markets, the NYMEX crude oil is $0.86 per barrel lower, the dollar is higher and the Dow Jones Industrials are down 54 points.
One analyst says that selling is coming from two different directions. "First, this week's weather is a lot different than last week's. Instead of extreme heat and humidity we are looking at still above normal temps but nothing extreme. Plus some showers over the second half of the week."
Southern areas, though, should stay dry, and the farther west you go the worse it gets in the South, he says.
"But, these are different forecasts than we left with on Friday, much easier on the body and the corn, and we are seeing the market's reaction. Plus, we got Washington and the stuff going on there to provide a reason to sell," he says.
He adds, "Otherwise, kind of a quiet day so far I think, the floor seems emptier than normal and quieter than normal today."
Mike
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In early trading:
The Dec. corn futures opened 10 3/4 cents lower at $6.74 3/4. The Nov. soybean contract opened 15 cents lower at $13.73 1/4. The Sep. wheat futures opened 8 1/2 cents lower at $6.83 3/4. The Dec. soybean meal futures contract opened $4.20 per short ton lower at $365.10 and Dec. soyoil futures opened $0.74 lower at $56.74.
In the outside markets, the NYMEX crude oil is $0.42 per barrel lower, the dollar is higher and the Dow Jones Industrials are down 60 points.
Favorable rains from the weekend have the grain markets trading in a lower pattern.
Mike
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At 8:10am:
USDA announces Monday that Japan bought 105,156 metric tons of U.S. corn for 2011-12 delivery.
Mike
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At 7:50am:
News nuggets:
--Russia is lifting its estimate of 2011 grain exports to 20 million metric tons. It seems that number just keeps rising.
--A Louisiana crop consultant reports Monday that dryland corn yields are coming in from 60-140 bushels per acre, with 15% of the corn harvested. Also, soybean harvest is expected to see anywhere from 20-80 bushel yields.
--Cattle are still dying from heat in the U.S. southern Plains.
--I don't have all of the details but news out of Brazil is that country's corn production will rise this year, due to higher profitability for that crop. Also, Brazil is importing ethanol. Simply put, cars are flying off the lots and drivers are burning through ethanol at a rapid clip.
Mike
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At 7:05am:
Early calls: Corn 6-8 cents lower, soybeans 10-12 cents lower, and wheat 5-7 cents lower.
Trackers:
Overnight grain, soybean markets=Trading weaker.
Crude Oil=$0.92 lower.
Dollar=Lower.
Wall Street=Seen trading lower with the Democratic and Republican lawmakers still trying to hammer out a debt deal. There are only nine days left for the U.S. to avoid a debt default or downgrade.
World Markets=Lower.
The trade expects this afternoon's USDA Crop Progress Report to show a 3-4% decline in crop ratings.
Meanwhile, Tom White, FutureRoad.net, a technically-influenced corn pit trader says the market has support but a downturn could find momentum. "The rebound on Friday would appear to keep the bulls in charge for now. But we still must take out recent highs at $7.03, if not 7.22 3/4 to keep this bias intact. Closing below $6.73 on Monday would be at least a temporary victory for the bears. If the market does move lower, we have several open gaps on the downside for consideration on the open outcry charts- the nearest open gap is at $6.58 1/2.
While it would be totally anticipatory and we are not advocating that it will occur, if the market does trade higher and holds at or near the $6.95 area (does not have to be exact), we could create a reverse head and shoulders pattern on the dailies- this would be bearish."
More in a minute,
Mike
