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marketeye
Senior Contributor

From the floor September 20

At the close:

The Dec corn futures settled 5 cents lower at $5.08 1/4. The Nov. soybean contract closed 15 1/2 cents higher at $10.84 1/2. The Dec. wheat futures finished 7 1/2 cents lower at $7.31 3/4.  The Dec. soyoil futures closed 75 points higher at $43.05. The Dec. soymeal futures closed $1.70 higher at $310.20 per short ton.

 

In the outside markets, the NYMEX crude oil is $1.31 per barrel higher, the dollar is lower, and the Dow Jones Industrials are up 134 points.

 

Profit-taking sent the grain markets lower. And this could be the case most of the week, traders say. The market is over-bought. There is technical resistance affecting the corn market, as well.

 

Mike

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At mid-session:

The Dec corn futures are 3 3/4 cents higher at $5.16 1/2. The Nov. soybean contract is 24 cents higher at $10.93. The Dec. wheat futures are 3 1/2 cents lower at $7.35.  The Dec. soyoil futures are 89 points higher at $43.19. The Dec. soymeal futures are $5.00 higher at $313.50 per short ton.

 

In the outside markets, the NYMEX crude oil is $1.56 per barrel higher, the dollar is lower, and the Dow Jones Industrials are up 96 points.


One trader says, "Today has been more two-sided than you might think, looking at the beans. There has been follow-through spec-buying.  There might be user-buying but my users are quiet so far in both beans and Corn.  There has also been spec-selling and some farm-selling here as well.  Trends are up in both the soybeans and corn, but corn should have somewhat limited upside potential as it has run quite a bit.  Charts do not show any real resistance until 550 Dec, but some liquidation-type trading from specs and some farm-selling might keep futures from getting that high.  The fundamental is the weather in Canada, Asia, and South America right now.  Freezes and drought will do it!"

 

Mike

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At 10:120am:

The markets have backed off. Wheat is now lower, corn only slightly higher, beans are still strong, but off their highs. One trader says it will be important for the markets to close above their daily high. Otherwise, it could signal a lower market is ahead.

 

Mike

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At the open:

The Dec corn futures are 8 3/4 cents higher at $5.22. The Nov. soybean contract opened 24 cents higher at $10.93. The Dec. wheat futures opened 12 3/4 cents higher at $7.52.  The Dec. soyoil futures opened 81 points higher at $43.11. The Dec. soymeal futures opened $6.00 higher at $314.50 per short ton.

 

In the outside markets, the NYMEX crude oil is $0.78 per barrel higher, the dollar is lower, and the Dow Jones Industrials are up 89 points.

 

Some brokers and analysts are offering 'sell' signals on soybeans Monday. It would be interesting to hear what some local soybean basis prices are? Anybody have one to share?

 

Mike

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At 9:20am:

USDA announced Monday that China bought 225,000 metric tons of U.S. soybeans for 2010-11.

Also, an unknown bought 110,000 metric tons of U.S. corn for 2010-11 delivery. And, South Korea bought 165,000 metric tons of U.S. corn for 2010-11.

 

Mike

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At 6:30am:

Early calls: Corn 8-10 cents higher, soybeans up 18-20 cents wheat up 10-12 cents. Look out Newt, she's a buckin!

 

Frost-scare in China's largest soybean-producing region, Brazil's dry weather, and spec buying ahead of two upcoming Chinese holidays made prices soar on the Dalian Exchange, overnight. You could probably use those same reasons why the CME Group's Globex Exchange markets soared as well, overnight.


Trackers:

Overnight grain=Trading sharply higher.

Crude oil=Trading $0.10 per barrel higher.

Dollar=Trading lower.

Wall Street= Seen opening higher ahead of this week's Fed Reserve meeting. Traders see the Fed starting a program to buy treasuries and mortage bonds to kick-start the economy.

World Markets=Higher.

 

More in a minute,

 

Mike

 

 

Mike

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12 Replies
giolucas
Frequent Contributor

Re: From the floor September 20

What does Newt have to do with the Grain Market?

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Jeff71
Senior Reader

Re: From the floor September 20

perhaps a "lonesome dove" reference

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giolucas
Frequent Contributor

Re: From the floor September 20

I just don't want to hear someone's political view.  Stick to the topic at hand, Grains!

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marketeye
Senior Contributor

Re: From the floor September 20

gioLucas, I'm with you. The bull is a buckin, not Newt Gingrich. If I wanted to be a politicial reporter, I woudln't be working on this site. So, to keep us on-topic, how's your marketing plan reacting to these sharply higher grain prices?

 

Where do you see this corn market going?

 

Do you consider technical or funny-mental factors, while watching the markets?

 

How do you play this rising market? I'm told farmers are being encouraged to price 2011 and 2012 crops, to take advantage of higher markets. Do you agree?

 

Do you think the funds have a firm grip on this market?

 

In your opinion, what drops this market? Or, what stops it from going higher?

 

Thanks,

 

Mike

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giolucas
Frequent Contributor

Re: From the floor September 20

Well, I was long from Friday at 1068 and sold when it got to 1083.  I got back into the long side at 10.91 and I am holding.  I think that the market will try to retest ,if not break through the 1099 level.  The volume was huge last night and I think that we are looking for higher levels.  I think that the bad yields in corn being reported will take us higher.  Although I think that we need to get profit when it comes.  Right now I feel more comfortable buying then selling. 

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giolucas
Frequent Contributor

Re: From the floor September 20

Mike,

 

I also want to apologize for assuming.  

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kraft-t
Senior Advisor

Re: From the floor September 20

Hold er newt was an expression that was around when I was a kid. Probably a decade or so before thee Newt was born.   I don't know where the term originated from but probably from and old time movie.

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giolucas
Frequent Contributor

Re: From the floor September 20

Sorry. Next round of beers on me!!!

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marketeye
Senior Contributor

Re: From the floor September 20

BEERS! Now you're getting off-topic, giolucas Smiley Happy.

 

Hey, look at that demand reported this morning. Corn and soybeans are flying out the window.

 

Mike

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