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Veteran Advisor

From the floor May 18

At 6:30am:
Early calls: Corn up 3-5 cents, soybeans up 5-7 cents, and wheat up 1-2 cents.  
Overnight, China's Cofco announced it has the import allotments needed to import more U.S. corn. It also can use other company's quotas if need be. Plus, Tuesday, South Korea bought 25,500 metric tons of U.S. wheat. Japan is seeking 147,000 metric tons of food wheat. Also, South Korea passed on a tender for U.S. corn, citing the price is too high.
Trackers:
Overnight grain=Trading higher.
Crude oil=Trading $1.84 per barrel higher.
U.S. Dollar=Trading lower.
World Markets=Mostly higher.
Wall Street=Seen opening higher on Wal-Mart's quarterly earnings report, crude oil up $1 per barrel yesterday, and a poll of Japanese manufacturers indicates optimism within the world economy.
More in a minute,
Mike
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Veteran Advisor

Re: From the floor May 18

At the open:
The July corn futures opened 5 3/4 cents higher at $3.61 1/2.  The Dec corn contract is up 5 3/4 cents. The July soybean futures contract opened 5 cents higher at $9.46 per bushel. The July wheat futures opened 3 cents higher at $4.72. July soybean meal futures opened $1.10 per short ton higher at $275.00 per short ton. The July soyoil futures opened 29 points higher at $37.42.

In the outside markets, the NYMEX crude oil is $1.56 per barrel higher, the dollar is lower, and the Dow Jones Industrials are up 91 points.

 

The outside markets are supportive.

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Veteran Advisor

Re: From the floor May 18

At 9:50am:

Prices have setback a bit; corn up 3 cents, soybeans up 2, and wheat up 1. The floor is loud in the options pits, especially for corn. The soybean options pit is fairly quiet, right along with corn futures. Some corn traders are wandering around, not even in the pit.

 

Mike

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Veteran Advisor

Re: From the floor May 18

At 10am:

One analyst says, "It's turn around Tuesday as markets reverse Mondays usually large moves by taking profits. Outside markets are stronger with crude oil up close to two dollars pulling corn and corn based ethanol along and bio-fuels pulling soyoil as well as a lower dollar suggesting a better exchange rate to buy U.S. grain. There' s a little energy coming from last night's crop condition report for corn coming in at 67% good to excellent condition, down from last years first rating of the year at 70%. The trade felt we were much better in spring weather this year over last years rainy, cold disaster. Look for a higher close in sympathy with these issues but no big rallies as weather looks to turn very favorable the next 10 days improving ratings and planting pace."

 

 

Mike

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Veteran Advisor

Re: From the floor May 18

At 10:45am:

Corn is nickel higher, soybeans are up 2, and wheat up a penny. One trader says with world instability, favorable outside markets, and just this idea that when corn is up around $3.80 you get bearish, when they are around $3.50 you get bullish. And right now, they just trade in a range. Plus, the talk that China will be buying more U.S. corn is swirling. One trader says he has a lot of reasons why this talk is true.

 

Mike

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Veteran Advisor

Re: From the floor May 18

At mid-session:

The July corn futures are 3 3/4 cents higher at $3.59 3/4.  The Dec corn contract is up 5 1/2 cents at $3.79. The July soybean futures contract is 1 cent higher at $9.42 per bushel, Nov beans are up 3 cents at $9.19. The July wheat futures 1 cent higher at $4.70. July soybean meal futures are $0.02 per short ton higher at $274.10 per short ton. The July soyoil futures are 18 points higher at $37.31.

In the outside markets, the NYMEX crude oil is $0.90 per barrel higher, the dollar is higher, and the Dow Jones Industrials are up 91 points.

 

Why are the markets higher? One trader says China rumors of more U.S. corn purchases. Plus, the hot weather forecast has some traders thinking the rain will shutoff and we will have a hot/dry summer. And, people are afraid to sell their positions with bullish factors lingering. Lastly, the market has sold off enough, as it reaches closer to a $3.50 support area.

 

What say you? Let's get some back-and-forth going on this board. Is there anyboday out there? Stand up and announce yourself, announce your arrival. Let's get it going here.

 

Mike

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Senior Contributor

Re: I'm here

Take a moment and check your posts whenever I can get near the 'puter.

Enjoy the comments and the updates although I can get a delayed quote too.

Keep up the good work, even if I neglect to thank you very often.

 

Thanks from north of the border.

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Veteran Advisor

Re: I'm here

Thanks for the thanks. I guess I hope that you would offer up your perspective of the markets and how your marketing plan is working for you. I think if we can generate some sharing, others can learn about what trades and approaches are working.

 

Mike

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Veteran Advisor

Re: From the floor May 18

Floor goes quiet, wheat and soybeans fall to 2 cents lower. This turnaround Tuesday has been turned back around.

 

Mike

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Contributor

Re: From the floor May 18

Hi, Mike -

 

My long July Soybean trade has clearly turned into an investment...

 

I am growing weary of watching the daily crashing of the Euro, and therefore the spiking dollar index, control the grain futures.

 

At some point, the demand for beans will become a factor, along with the long growing season and weather factors ahead...

 

I am hopeful that my investment will break even before contract expiration, but meanwhile it is dead money riding a losing horse...

 

My conclusion is that the grains trade sideways to slightly down, and I intend to short any rallies against my long "investment".

 

JOHN

 

 

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