From the floor June 11
In the outside markets, NYMEX crude oil is $1.74 per barrel lower, the U.S. Dollar is higher, and the Dow Jones Industrial Index is 57 points lower.
One analyst says the crush margins widened out again and that pushed up the soybean complex. “The market is really schizophrenic. On one hand, one of the reasons the meal market is strong is due to farmers holding onto old-crop soybeans. Therefore, there is not enough for crushers to use to meet the demand for soymeal.”
“However, one would think that if we are constraining soymeal crush, while we are constraining exports, that would be bearish for old-crop soybeans. Instead, soybeans are rallying.
Plus, new crop soybeans were rallying today, as well. “Too much rain is starting to set in for many farmers’ soybean crop. So, weather is supporting soybean prices. Also, there was some short-covering heading into the weekend, helping push up the soybean complex.
CANADA CUTS PLANTED ACRES: Canadian Wheat Board announced Friday that between 8.25-12.0 million acres of farmland will not be planted this year due to cold and extensive wetness. That land would normally be planted to wheat, barley, oats, and canola. However, this news didn’t seem to have an impact on the canola or soybean oil prices Friday. The oil market ignored this news. The focus was on meal and beans.
At the open, the July corn futures opened 2 1/2 cents higher at $3.45 3/4. The July soybean futures contract opened steady at $9.35 per bushel. The July wheat futures opened 1/4 of a cent lower at $4.33. July soybean meal futures opened $1.70 higher at $284.00 per short ton. The July soyoil futures opened 11 points higher at $36.86.
In the outside markets, the NYMEX crude oil is $0.58 per barrel lower, the dollar is higher, and the Dow Jones Industrials are down 5 points.
Wall Street=Seen opening higher after strong session yesterday.
More in a minute,
Re: From the floor June 11
Corn to $4 +, crude to $40 - etc as ALL of agri now continues to decouple from the other Supposed related factors spun ( dow, eu, dollar, gold, tea price in say iran, etc ).
The gulf deal is shaping up to be a huge foodstuff reduction affect and even moreso in the future ( spin on that starts anytime now ).
Exports ( record exports btw, of products like beef ) of all the agri products simply means other folks will pay up for more and variety of all the agri products produced in the usa too.