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Senior Contributor

From the floor October 27

At the close:

The Dec corn futures finished 6 1/4 cents higher at $5.77 1/4. The Nov. soybean contract closed 4 3/4 cents higher at $12.23 3/4. The Dec. wheat futures closed 10 3/4 cents higher at $7.02 3/4.  The Dec. soymeal futures contract finished $0.40 higher at $335.90 per short ton. The Dec. soyoil futures contract ended $0.07 higher at $49.60.

 

In the outside markets, the NYMEX crude oil is $0.61 per barrel lower, the dollar is higher, and the Dow Jones Industrials are down 86 points.

 

Mike

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At mid-session:

The Dec corn futures are 3 3/4 cents lower at $5.67 3/4. The Nov. soybean contract is 5 1/2 cents lower at $12.13 1/2. The Dec. wheat futures are 7 3/4 cents higher at $6.99 3/4.  The Dec. soymeal futures contract is $2.10 lower at $333.40 per short ton. The Dec. soyoil futures contract is $0.30 lower at $49.23.

 

In the outside markets, the NYMEX crude oil is $1.18 per barrel lower, the dollar is higher, and the Dow Jones Industrials are down 116 points.

 

One analyst says, "It's end of the month, so funds fat with profits continue to take them on
rallies. They sold the Monday highs into a Tuesday low. They then started buying them back to another high Tuesday night, followed by profit-taking again into a new low on the week Wednesday. That was followed by a repeat of buying off the low. There are no sellers in the market, as fundamentals are to bullish. We are just seeing profit takers on rallies and buyers off the breaks. Traders look for a higher open Thursday on a bullish bean export sales report with featured buyer China in heavily. But, another correction will occur off
the rally, with new buyers entering next week ahead of the Nov. 9 crop report.

 

Meanwhile, reviewing this week's market action, plus looking forward, one analyst sees more downside yet this week. He says, "After Monday's high corn pulled down $.16, beans $.15 and we $.21 into Tuesday  low before buying came back in. That's half the profit-taking we saw on the third week pullback. There's still room for more downside but remember, no one wants to sell short in this bullish environment, but only take profits off rallies. If were going to have a bigger post harvest correction it can't occur until after the November 9 crop report that is  feared to be bullish. Our goal this week or after November 1 is to find a dip in prices  to get long ahead of the November 9 USDA crop report."

 

Mike

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At the open:

The Dec corn futures are 8 1/2 cents lower at $5.62 1/2. The Nov. soybean contract opened 17 3/4 cents lower at $12.00 3/4. The Dec. wheat futures opened 3 cents lower at $6.89.  The Dec. soymeal futures contract opened $4.30 lower at $331.20 per short ton. The Dec. soyoil futures contract opened $0.73 lower at $48.80.

 

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 102 points.

 

Mike

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At 7:45am:

News of note:

-S. Korea buys 220,000mt of Canadian feed wheat.

-Asia buyers are looing towards Australia for feed wheat needs. Ukraine lacks supply.

-Remember when India let all of that wheat rot by storing it on the ground? That country announced it will build 15 million tons of grain storage.

-Based on global demand, Rabobank pushed up its average soybean price forecast for Jan-March 2011 period to $12.75 per bushel. It's current quarter estimate is now $11.75 vs. $10.50. For corn, $5.80 is the new average estimate for the Jan.-March 2011 period. For this current quarter, corn is seen averaging $5.50 vs. $5.25.

-Morgan Stanley folks say U.S. farmers will move from soybeans to corn in 2011.

-Argentina's farm officials say the current soybean planting could produce a record-breaking 55.0 million metric tons of soybeans.

 

Mike

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At 7am:

Early calls: Corn down 3-5 cents, soybeans down 8-10 cents, and wheat down 1-2 cents.

 

 

Trackers:

Overnight grain=Traded lower.

Crude oil=Trading $0.83 per barrel lower.

Dollar=Trading higher.

Wall Street=Seen lower as investors reassess the Fed's aggressiveness for another round of stimulus. Also, more corporate earnings will be released today and housing data.

World Markets=Lower.

 

Mike

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5 Replies
Veteran Contributor

Re: From the floor October 27

Hey Marketeye, welcome back. 

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Senior Contributor

Re: From the floor October 27

SouthWest Ohio,

 

Thanks. It's a little tough sometimes to get back into the groove, after being gone. You know what I mean? Those ocean waters splashing on the coast of Barbados tend to stick with you. Smiley Happy I wish.

 

Mike

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Veteran Contributor

Re: From the floor October 27

Know what you mean about getting back in the groove, sleeping in until 7am etc... Smiley Happy

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Veteran Contributor

Re: From the floor October 27

Does today's turnaround have anything to do with some firms calling for 150 or lower corn yield in the next report?  Wish I would have caught the names of the firms on the radio..but I missed that part.    With SA's bean crop projected to be so big, the bean rally is impressive.

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Contributor

Re: From the floor October 27

Beans have to rally...and quite a bit yet- you can forward jul'12 crops out at 550-basis so beans are trying to buy acres...I suspect they will have to hit 14 minimum to compete with corn, especially since new technology makes corn on corn yield as well as traditional rotation programs