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Senior Contributor

From the floor November 23

At the close:

The March corn futures settled 13 1/4 cents higher at $5.28 1/2. The Jan. soybean contract closed 17 1/2 cents higher at $12.46 1/4. The Dec. wheat futures settled 3 1/2 cents lower at $6.42.  The Dec. soymeal futures contract settled $7.10 higher at $340.70 per short ton. The Jan. soyoil futures contract closed 0.06 higher at $49.57.

 

In the outside markets, the NYMEX crude oil is $0.34 per barrel lower, the dollar is higher, and the Dow Jones Industrials are down 147 points.

 

Mike

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At 12:45pm:

 

Corn has rallied, up as much as 12¢ a while ago. I'm hearing two different stories as to why corn has suddenly rallied. One thought is the market has been hit hard enough the psast week, so commercials are stepping in and buying supply on the dip. Yet, another trader says we're not seeing the commercials buying in the pit. He says there's no 'paper' in the pit. He's not sure of that idea. So, then I'm told that U.S. corn was sold to a European buyer, something that hasn't happened in awhile. So, in either case, somebody is buying corn somewhere. Thus, a rally for the corn market.

 

Mike

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At mid-sesson:

The March corn futures are 7 3/4 cents higher at $5.37. The Jan. soybean contract is 1/4 of a cent lower at $12.21 1/4. The Dec. wheat futures are 3 cents lower at $6.32 1/2.  The Dec. soymeal futures contract is $0.50 higher at $334.10 per short ton. The Jan. soyoil futures contract is $0.39 lower at $49.12.

 

In the outside markets, the NYMEX crude oil is $0.65 per barrel lower, the dollar is higher, and the Dow Jones Industrials are down 176 points.

 

Mike

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At 10:25am;

Corn has turned higher, everything else remains lower.

 

One analyst says, "The overnight action was all fear over the Korea brothers. No one new if they would toss nuclear bombs or what. So, everything responds to political fears. But, they quickly saw it was in some what of control. Grains broke on the opening, as we continue year-end fund liquidation. But, spec short-covering pulled us off the lows. There's going to be a lot of position-squaring and evening-up prior the holiday," he says.

 

Mike

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At the open:

The March corn futures opened 8 cents lower at $5.22. The Jan. soybean contract opened 14 cents lower at $12.07 1/2. The Dec. wheat futures opened 8 cents lower at $6.37 1/4.  The Dec. soymeal futures contract opened $2.10 lower at $331.50 per short ton. The Jan. soyoil futures contract opened $0.67 lower at $48.84.

 

In the outside markets, the NYMEX crude oil is $0.97 per barrel lower, the dollar is higher, and the Dow Jones Industrials are down 143 points.

 

Higher Dollar, the Korean Conflict, profit-taking, all sinking the commodities today.

 

Mike

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At 7am:

 

Though I'm looking for more on this, USDA Secretary Tom Vilsack said  Monday that China has agreed to buy more than 5.5 million tons of soybeans worth about $3 billion from the U.S.

 

Also, there seems to be more countries that are concerned about securing future food supplies. I know we have heard  before that China is investing heavily into Africa. Today, we hear that the United Arab Emirates are looking for ag investments in Africa and Asia for food security. Because of water shortages, wheat production will be eliminated by 2016.

 

--Russia announced Tuesday it will cut its 2011 poultry imports in half.

 

Mike

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At 6:30am:


Early calls: Corn down 1-2 cents, soybeans 1-2 higher, and and wheat 1-2 lower.


Trackers:

Overnight grain markets=Trading mixed.

Crude Oil=$0.53 lower.

Dollar=Higher.

Wall Street=Seen trading lower as tensions mount in the Korean Peninsula. Today, North Korea fired the most artillery on South Korea since 1953, the end of the Korean War. Two people have died, hundreds are injured and an entire neighborhood on a South Korean island is on fire. This adds to investor worries about Europe's financial problems.

World  Markets=Lower.

 


More in a minute,

Mike

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6 Replies
Senior Reader

Re: From the floor November 23

Thank you for your reporting from the floor. Was curious as to when the December Corn options expire?

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Senior Contributor

Re: From the floor November 23

November 26th. Thank you for following along. Do you have some corn options to get out of. Remember, the closer to the expiry date, they lose value. But, you probably already knew that.

 

Mike

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Contributor

Re: From the floor November 23

Thanks for the report. Do you know if UAE and or China or any foriegn countries are able to invest in American farms if they wanted to. I thought they could not but not sure.

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Veteran Contributor

Re: From the floor November 23

I think this map shows why it is soon going to be all about the demand from China and India.  China's inflation problem has yet to play out...bubble?  WithChina's inflation, does that not make our grain a better value every day?   Uncle Ben wants to convince Americans they should trade their money markets for equities, but looks to me that the dollar will not collapse....especially with the tea party in town. Call me stupid, but I think there are still a lot of Americans that would sacrifice to do what it takes to save this country.  

Food prices will still be determined by weather, somethings never change.  Seems like everyone is believing the big SA crop estimates now just like they did about the US crop this summer...time will tell if they are right.

 

http://en.wikipedia.org/wiki/File:2006megacities.PNG

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Contributor

Re: From the floor November 23

the way the china "sale" was reported was just a letter of intent...said to be SOP and means little..for what its worth.....thanks for the reports, nice to have some info during the day

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Senior Contributor

Re: From the floor November 23

Gotcha jdmcfarm1. I have to admit, I can learn just as much from ya'll than you do from me. Thanks for the update. China seems to be on a lot of trade mission trips lately. The floor traders are still talking about that 'dog-and-pony' show China had recently with Argentina, on corn purchases.

 

Mike

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