05-04-2010 01:59 PM
From the floor May 4
At the close:
The July corn futures ended 2 1/2 cents lower at $3.69. The July soybean futures contract settled 1/2 of a cent higher at $9.87 per bushel. The July wheat futures finished 8 cents higher at $5.10 3/4. July soybean meal futures closed $2.80 per short ton higher at $287.80 per short ton. The July soyoil futures closed 33 points lower at $38.68.
In the outside markets, the NYMEX crude oil is $3.38 per barrel lower, the dollar is screaming higher, and the Dow Jones Industrials are down 244 points.
Some of the drop in the markets today came from weak technicals. The markets dropped below either their 100-day or 200-day moving averages, before closing above them. Otherwise the main theme was heavy pressure from outside markets, traders say.
The July corn futures are 4 1/2 cents lower at $3.67. The July soybean futures contract is 2 1/4 cents lower at $9.84 1/4 per bushel. The July wheat futures are 3/4 of a cent higher at $5.02 1/2. July soybean meal futures are trading $1.60 per short ton higher at $286.60 per short ton. The July soyoil futures are 28 points lower at $38.73.
In the outside markets, the NYMEX crude oil is $2.76 per barrel lower, the dollar is screaming higher, and the Dow Jones Industrials are down 221 points.
The outside markets are going directly against the grains. The outsides are getting smoked, one trader says.
One analyst says the grains are lower today as we price in pressure from energies sharply lower and their relationship to corn based ethanol and soyoil to bio-fuel as well as a historicly fast planting pace on last nights crop progress report putting any threat of planting problems on hold at least thru today. But, watch out as today's low may hold the rest of this week as Wed. to Fri. News is more friendly with heavy rain called for late week, potential for a Midwest frost Sat. and Sun. and a potentially bullish ending stocks number on next Tuesdays USDA crop report."
At the open:
The July corn futures opened 4 3/4 cents lower at $3.66 1/2. The July soybean futures contract opened 8 cents lower at $9.78 1/2 per bushel. The July wheat futures opened 5 3/4 cents lower at $4.96. July soybean meal futures opened down $1.00 per short ton at $284.00 per short ton. The July soyoil futures opened 31 points lower at $38.70.
In the outside markets, the NYMEX crude oil is $2.17 per barrel lower, the dollar is higher, and the Dow Jones Industrials are down 162 points.
Weather pressure is being blamed for a weaker market. Maybe the stronger dollar can keep the losses to a minimum.
Illinois saw its warmest April ever. The average temp was 58.4 degrees, according to state records. This beats a record of 58.2 degrees set in 1955. Also, the statewide average precipitation in April was 3.5 inches, or 0.3 inches below normal. Some areas in western Illinois received five inches of rain. All in all, a great month for fieldwork and the market is taking note.
One market analyst says yesterday's poor grain trade was a result of concern about the new financial regulatory law, and that it could lower position limits for commodity ETF’s and hedge funds significantly from the current position limits. Anybody out there that is related to ETF's or a hedge fund that could confirm this concern?
Hey, the CME says 84% of its volume is now traded electronically. Are suprised it's that high?
Early calls: Corn, soybeans down 1-3 cents, wheat down 3-5.
USDA says U.S. corn is 68% planted. The Kansas Wheat Tour has already started or is getting ready to start this week. I'm hearing it's the best crop in 7-years.
Overnight grain=Trading lower.
Crude oil=Trading $1.35 lower.
U.S. Dollar=Trading higher.
Wall Street=Seen opening lower.
More in a minute,