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marketeye
Veteran Advisor

From the floor July 6

At the close:

The Dec. corn futures closed 4 cents lower at $6.08 1/2. The Nov. soybean contract ended 1/2 of a cent higher at $13.18 1/2. The Sep. wheat futures settled 8 1/2 cents lower at $6.27. The Dec. soybean meal futures contract closed $2.30 per short ton higher at $343.20 and Dec. soyoil futures closed $0.18 higher at $56.39.

 

In the outside markets, the NYMEX crude oil is $0.13 per barrel higher, the dollar is higher and the Dow Jones Industrials are up 56 points.

 

Mike

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At mid-session:

The Dec. corn futures are trading unchanged at $6.12 1/2. The Nov. soybean contract is trading unchanged at $13.18. The Sep. wheat futures are trading 10 cents lower at $6.25 1/2. The Dec. soybean meal futures contract is $6.00 per short ton lower at $341.50 and Dec. soyoil futures are $0.09 higher at $56.30.

 

In the outside markets, the NYMEX crude oil is $0.05 per barrel higher, the dollar is higher and the Dow Jones Industrials are up 36 points.

 

The higher dollar is pressuring the grains. Increased demand, with today's fresh corn sales, is supporting the corn market. One analyst says the markets seem quiet, but don't fall asleep. "They are trading 3 or 4 friendly and negative events today with no major theme over riding the market., The negative news was higher crop condition numbers on last night's report and generally good growing weather this week and softer energy prices with a higher dollar. The positive news is good export news for corn today with sales to Asia with higher metals and stocks. So, weather rules, when the USDA is quiet. But, quiet not for long as next Tuesday's USDA monthly crop report comes out and as we know from last week's acreage report, surprises come from Bulls and Bears."

 

Mike

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At the open:

The Dec. corn futures opened 6 cents lower at $6.06 1/2. The Nov. soybean contract opened 8 cents lower at $13.10. The Sep. wheat futures opened 11 cents lower at $6.23 3/4. The Dec. soybean meal futures contract opened $2.30 per short ton lower at $338.60 and Dec. soyoil futures opened $0.11 lower at $56.10.

 

In the outside markets, the NYMEX crude oil is $0.76 per barrel lower, the dollar is higher and the Dow Jones Industrials are up 41 points.

 

Mike

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

At 8:10am:

News notes:

A Brazilian contact is reporting that amid the backdrop of shortages of ethanol, President Rousseff has decided to reduce from 25% to 18% the amount of ethanol in that country's gasoline blend.

 

Mike

--------

At 6:30am:

In case you missed it, here are the highlights of this week's USDA Crop Progress Report:

 

Corn condition inches up by 1% to 69% good/excellent, while the first silking report of the year shows only 6% pollinated vs. 12% average and 18% last year. This shows delayed development.

 

US soy conditions inched up 1% as well to 66% good/excellent, equal to a year ago.

 

Jeff's full story on crop progress.

 

So, what say you? How will the market take this slightly better crop progress. Slightly better and that's about it.

 

Mike

-----------

At 6am:

Early calls: Corn 7-9 cents lower, soybeans 10-12 cents lower and wheat 7-9 cents lower.


Trackers:

Overnight grain, soybean markets=Trading lower.

Crude Oil=$0.40 lower.

Dollar=Higher.

Wall Street=Seen trading lower as Europe's Portugual has seen its debt rating dropped to junk status. Plus, investors are eyeing the U.S. weekly jobless claims that come out Thursday.

World Markets=Lower on Europe's economic concerns. 

 

 

More in a minute,

 

Mike

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13 Replies
IronBob
Contributor

Re: From the floor July 6

From sc IL. The local elevator nearby bid is an unprecedented $.50 over the Sept. They ship to the processors and river terminals. Makes you wonder who has possession of all these stocks.

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marketeye
Veteran Advisor

Re: From the floor July 6

IronBob,

 

Did you contract any at that price? Or, do you think it will go even higher? We're hearing of stronger cash bids elsewhere too. I'm baffled about where the corn is. When you see the July contract drop 82 cents in one day, it makes you convinced there is no shortage out there. But, maybe September really is a new-crop contract (with the idea that corn will be harvested in late Aug.), like some have been talking about.

 

Mike

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marketeye
Veteran Advisor

Re: From the floor July 6

At 8:20am:

Here comes the buying:

--USDA says 120,000 metric tons of U.S. corn was sold to Egypt for 2010-11 delivery.

--USDA says 225,000 metric tons of U.S. corn was sold to S. Korea for 2011-12.

 

What does this do to today's market?

 

Mike

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IronBob
Contributor

Re: From the floor July 6

The 50 over Sep is the nearby bid. First half Sep is 2 cents under the Dec. A 65 cent difference. I still have a little old crop left and am waiting for the dust to settle some on all this.

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NCcorntrader
Senior Contributor

Re: From the floor July 6

Man has it gotten quiet around here. Quite a change from the 74 posts attached to the June 30 floor report!

 

Whats the trading floor like? The same?

 

 

 

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marketeye
Veteran Advisor

Re: From the floor July 6

It's much the same. There are a lot of folds trying to squeeze in a vacation, I think.

 

Mike

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glenlivet18
Veteran Contributor

Re: From the floor July 6

I usually trade two of the three major grains at any given time, but since Black Thursday I've taken just one trade and that was in wheat.  Just waiting for the market to right itself.

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Pupdaddy
Advisor

Re: From the floor July 6

Nearby basis in Fostoria, Ohio is still 60 cents over this morning. August is 68...and I believe end of August delivery is 84. Sept. basis is 35 over..apparently they think someone is going to harvest corn in late Sept.....

 

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GoredHusker
Senior Contributor

Re: From the floor July 6

Never say never.  In 2009, we had a late harvest.  There was a 70 cent basis swing from old crop to new crop.  Guys brought in portable driers and picked corn in the 30's, dried it, and shipped it off.  If there's incentive, you'd be surprised how early some will pick corn just to hit the market. 

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