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Senior Contributor

From the floor November 30

At the close:

The March corn futures settled 9 1/4 cents lower at $5.44. The Jan. soybean contract closed 8 cents higher at $12.51 1/2. The March wheat futures settled 1/4 of a cent higher at $6.90 3/4. The Jan. soyoil futures contract settled $0.78 higher at $51.00. The Dec. soymeal futures contract closed $2.30 per short ton higher at $338.60.


In the outside markets, the NYMEX crude oil is $1.56 per barrel lower, the dollar is higher, and the Dow Jones Industrials are down 15 points.

 

One trader says the news out of China today hurt the corn market. See full explanation in earlier day post within this thread. The trader says, "COFCO is the Chinese government's buying agency.  I think it is a head fake.  No one else there talks about great crops or yields. But, I kind of think it is responsible for the weakness in corn today."


Mike

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At mid-session:

The March corn futures are 6 3/4 cents lower at $5.46 1/2. The Jan. soybean contract is 3 3/4 cents higher at $12.47 1/4. The March wheat futures are 2 3/4 cents higher at $6.93 3/4. The Jan. soyoil futures contract is $0.48 higher at $50.70. The Dec. soymeal futures contract is trading  $1.10 per short ton lower at $335.20.


In the outside markets, the NYMEX crude oil is $0.75 per barrel lower, the dollar is higher, and the Dow Jones Industrials are down 28 points.

 

One trader says, "Corn is the weak sister. I guess we're seeing some spec selling on no demand news and bigger than expected deliveries.  March is holding its support around 544-545 pretty well, though so I am hoping this is the end of it.  I guess also some fears that the ethanol tax break might not get renewed this month too, although I think something will get done there.  Soybeans up on the new sales of 165,000 and dry weather in Argentina with little help coming.  Brazil seems to be getting enough rain for now.  Wheat is a weather market, with dry here in the Great Plains and lots of rain in eastern Australia supporting things.  We are dead here, so I think volumes overall are light or else it is primarily a fund-driven day."

 

NEWS: A trader says he's reading headlines this morning that say China's COFCO Chairman is saying that his country will import little amounts of corn in 2011 because of a record harvest. He says China has plenty of corn. Meanwhile, China soybean imports could grow 5-7% annually, equal to 1-3 million metric tons. And oh by the way, he says, Brazil's supply will fill China's increasing soybean demand.

 

Mike

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At the open:

The March corn futures opened 2 3/4 cents lower at $5.50 3/4. The Jan. soybean contract opened 1/2 of a cent higher at $12.35 1/2. The March wheat futures opened 1 1/2 cents higher at $6.91 3/4. The Jan. soyoil futures contract opened $0.31 higher at $50.53. The Dec. soymeal futures opened $0.90 per short ton lower.


In the outside markets, the NYMEX crude oil is $0.43 per barrel lower, the dollar is higher, and the Dow Jones Industrials are down 30 points. The Dow drops due to to rising European debt concerns.

 

Mike

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At 8:20am:

USDA announces 165,000 metric tons of U.S. soybeans were sold Tuesday to an unknown buyer for 2010-11 delivery.

 

Mike

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At 7:15am:

China rejected its first U.S. GMO corn shipment Monday. The 52,000 metric ton cargo has been off-loaded. But, Chinese quarintine officials are checking it for an unacceptable strain. Word is the shipment will eventually be accepted and nothing further will happen.

 

Japan is seeking 209,297 metric tons of U.S. wheat Tuesday. A deal may get done tomorrow.

 

A Taiwan buyer is looking to purchase 60,000 metric tons of U.S. corn.

 

Mike

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At 6:30am:


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

 

Trackers:

Overnight grain markets=Trading mostly higher.

Crude Oil=$0.39 lower.

Dollar=Higher.

Wall Street=Seen trading lower on continued European financial problems. The worry now is whether Spain, the  big daddy of them all, will need bailed out. Also, the market is faced with Chinese inflation-fighting measures.

World  Markets=Lower.

 

I know that yesterday I mentioned the quietness of the marketing discussion group. I know these markets are very hard to understand, follow, and even harder to figure out. And really, there's little talk from floor traders or analysts on the direction of these prices. So, it's not only farmers that are quiet right now. It's people even closer to these trades that seem to be quietly wondering which direction things head. It feels like when a basketball slowly goes around and around on the rim of a basketball hoop. The crowd and the players just sit and wait, to see if the ball is going to go in or fall out of the basket.

 

More in a minute,

Mike

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Contributor

Re: From the floor November 30

 

    Calm before the storm Mike .  Thanks for being on top of what's happen       Stan

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