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Veteran Advisor

From the floor May 21

At the close:
The July corn futures closed 7 cents higher at $3.69.  The July soybean futures contract closed 3 cents lower at $9.41 per bushel. The July wheat futures ended 2 1/4 cents higher at $4.72. July soybean meal futures ended $6.00 per short ton lower at $275.60 per short ton. The July soyoil futures closed 43 points lower at $36.96.

In the outside markets, the NYMEX crude oil is $0.80 per barrel lower, the dollar is lower, and the Dow Jones Industrials are up 54 points.
One trader says the stronger outside markets and the dollar weakening helped the grains hold onto its gains. June options contract expired today. As a result, there was some rolling of positions.What say you about this wild week? Let's hear you!
Mike
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At mid-session:
The July corn futures are 7 1/2 cents higher at $3.69 1/2.  The July soybean futures contract is trading 6 cents higher at $9.50 per bushel. The July wheat futures are 3 1/4 cents higher at $4.73. July soybean meal futures are $2.40 per short ton higher at $278.60 per short ton. The July soyoil futures are 3 points higher at $37.42.

In the outside markets, the NYMEX crude oil is unchanged per barrel, the dollar is even, and the Dow Jones Industrials are up 115 points.
One analyst says the outside markets are becoming supportive for the grains. Plus, the grain markets have done very well this week.  When you consider how collapsing the outside markets have been, corn has the chance to finish higher on the week, beans only down slightly. The reason grains have held is due to bullish underlying fundamentals. There is enormously surging corn demand both domestically and worldwide with Japan and China.
Mike
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At 10am:
Corn is +4, beans +2 1/2, wheat +1 1/4 cents.
One analyst says the traders are short-covering ahead of the weekend. There is light buying, nothing big, because traders don't want to go home for the weekend too heavily long. Demand is pushing up the grain markets, with China's corn and soybean purchases this morning. Demand is strong, as reflected with China buying beans from the U.S. vs. South America. Meanwhile, corn and soybeans touched support levels this week. The charts show that the traders don't want to sell at these points, rather buy. The analyst says don't look for a close of 10-11 cents higher or anything, but the market does have some underpinning support. The dollar is generally mixed this morning, crude, still lower, is gaining strength, and the Dow is a bit higher.
Mike
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At the open:
The July corn futures opened 1/2 of a cent lower at $3.61 1/2, Dec. corn is 1 cent lower at $3.68.  The July soybean futures contract opened 1/2 of a cent higher at $9.44 1/2 per bushel, Nov beans are 2 cents lower at $9.06. The July wheat futures opened 1/4 of a cent lower at $4.69 1/2. July soybean meal futures opened $0.20 lower at $276.00 per short ton. The July soyoil futures opened 9 points lower at $37.30.

In the outside markets, the NYMEX crude oil is $0.72 per barrel lower, the dollar is lower, and the Dow Jones Industrials are down 16 points.
Mike
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At 8:25am:
Even more demand! On Friday, USDA announces a sale of 118,000 metric tons of U.S. corn to China for 2009-10 delivery! It (demand) just keeps coming..........
Mike
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At 8:15am:
More demand! USDA Friday announces a sale of 120,000 metric tons of U.S. soybeans to China for 2010-11 delivery. This comes on the heels of the report showing China's April soybean imports were up 13% on year.
I talk about demand in my video report at http://bit.ly/10AYLd
Mike
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At 6:30am:
Early calls: Corn down 1-2 cents, soybeans up 1-2 cents, and wheat down 1-2 cents. 
Trackers:
Overnight grain=Trading mostly lower.
Crude oil=Trading $0.92 per barrel lower. It hit $70 per barrel this morning.
U.S. Dollar=Trading lower.
World Markets=Lower.

Wall Street=Seen opening slightly higher on a pause from yesterday's drastic sell-off. Also today, Germany will approve a $1 trillion bailout for Europe's financial crisis.

 

 

More in a minute,

 

Mike

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10 Replies
Senior Contributor

Re: From the floor May 21

mike, in your  videoes it always sounds like someone is using a nail gun in the background. what is that noise? just curious. d7 thanks for your reports

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Veteran Advisor

Re: From the floor May 21

That noise is the time-stamp machine that traders use to mark their trading cards. So, as you can imagine, it is going off all of the time. It's like a generator or air-compressor in a machine shed, you just get used to it.

 

Good observation though dapper7 and thanks for watching.

 

Mike

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bjw6530
Senior Reader

Re: From the floor May 21

hey mike,

I like the new setup....posting everything on one page.  It makes it a lot easier to read your great info.  Thanks

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Veteran Contributor

Re: From the floor May 21

July Corn up 7, how about some info from the floorSmiley Surprised

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Veteran Advisor

Re: From the floor May 21

Traders say the overall positive move of the outside markets, combined with demand announcements, have the grains moving higher.

 

Mike

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Senior Contributor

Re: From the floor May 21

All I can say is the Chinese must think that they have died and went to heaven...... The more that they have been buying the lower prices were going this week...... I think that they like the markets  being in turmoil...... Nobody is paying attention to them as they buy .... buy..... buy...... p-oed

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Advisor

Re: From the floor May 21

I know,  they come out and say the Chinese are buying corn and the market goes down because the bears talk people into believing it is just a rumor.  Then the government comes in at the end of the week and confirms the chinese bought, and the market finally goes higher.  It seems there are a lot of doubting Thomas concerning the grain reserves of the Chinese.  If this cat and mouse game keeps happening, people will look around and see the cupboards are bare.

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Senior Contributor

Re: From the floor May 21

buck, you been reading marketskeptics.com? according to that site the 2010 food crisis is a lock. so was 09, 08. at some point he will be right and so will elwynn taylor. is that now or still some unknown point in the future? that is the multi trillion dollar question.(nobody uses billions anymore).d7

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Advisor

Re: From the floor May 21

  I don't know what marketskeptics.com are but the price of corn in China is about 7.00 per bushel.  They have a lot of room to ship in corn from the US.  You don't have that price difference without  stockpile issues.

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