05-07-2010 10:03 AM
From the floor May 7
At the open:
The July corn futures opened 2 1/2 cents lower at $3.68 3/4. The July soybean futures contract opened 3 1/2 cents lower at $9.50 1/2 per bushel. The July wheat futures opened 3 1/4 cents lower at $5.05. July soybean meal futures opened down $0.19 per short ton at $276.50 per short ton. The July soyoil futures opened 34 points lower at $37.78.
In the outside markets, the NYMEX crude oil is $1.15 per barrel lower, the dollar is higher, and the Dow Jones Industrials are down 176 points.
The Dow is falling fast again! One analyst says the grain markets are still very shaky watching outside financials. "We have energy sharply lower with a lot of length still being shed there. I thought jobless claims were positive but still some leftover selling in the Dow so far. After an hour or so that nervousness should get shaken out and if we can stabilize on the outside markets I think the grains will find support.
He adds, "I view the weather as supportive to the grains with chances of damage in wheat country overnight and plenty of dryness in the FSU and Australia. China is no peach either as far as weather goes.
So, in the short term some nervousness with the outside financials but don’t forget the grain fundamentals especially corn are looking much more positive. The demand for corn the last 5 weeks has surpassed any analyst in the world’s wildest dream and USDA will be making adjustments to both corn used for ethanol and exports in their upcoming stocks report, one of which is next week."