Morning Comments – Tuesday August 16, 2016

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Monday’s commodity market was higher for soybeans and corn, lower for wheat.  Specs and commercials pushed the soybean market higher after strong commercial demand for soybean meal and soybean oil and a 4% jump in the price of Palm Oil overnight, Sunday evening.  The Macro Markets were positive as the DOW was higher; Oil higher and the US Dollar Index trading lower.  The Dow closed at 18,651 up 75 points for the day.  Crude Oil closed at $45.78, up $1.29 per barrel.  The West Texas Intermediate Crude (WTI) September 16 to September 17 spread closed tonight at $4.51 carry to September 2017.   August Heating Oil closed at $1.4518, up $0.0432 per gallon.  The US Dollar Index closed at $95.62, down $0.24.  The 10-year US Treasury bond closed up at a 1.54% yield and the 30-year bond closed at 2.27%.  Monday’s CBOT closes were 3.25 to 4.25 cents per bushel higher for corn, 13 to 27.5 cents higher for soybeans and 0.5 to 10 cents lower for Chicago wheat.  Cash bids at the river have traded at $10.40 after they reached $11.47+ for November through January for soybeans and SEP corn is trading around $3.35 after hitting a top in $4.65-4.75 area for JAN delivery corn.  We are currently bidding about $0.15 to $0.20 behind those prices for the same time slots at our local elevators.  If you need help with marketing and logistics, we can help sell your crop arrange transportation to the terminals if necessary.

Friday’s USDA WASDE report was a stunner with national corn yields estimated at 175.1 bpa and a total corn crop just shy of 15.2 billion bushels.  The soybean yields estimate was a stunner as well.  The markets traded lower at first just after the report was released and then rallied to finish the day higher.  The Commercial support for meal and oil, coupled with the 4% over-night jump in Palm Oil prices in Asia produced strong gains in the soy complex and moderate gains in corn again on Monday.  The big question is, “Have we put in the fall Low”?  Some analyst feel that we have several others think that we still have another move lower coming in the next few weeks.

Check out our Daily Grain Bids (updated every 10 minutes during the trading session) by clicking on:        www.buchheitagri.com/biehle-grain-bids/   or   www.buchheitagri.com/morehouse-grain-bids/      or feel free to call us at 800-622-7937 (ask for Katlyn, Eric or Dave) or call 573-667-9921 or 573-768-0489 and ask for Shon.

Long Accumulation by the Specs and Commercials pushed the soybean and meal markets higher today as Specs bought 3,000 contracts of corn to finish the day at 115,000 contracts short. They bought 9,000 contracts of soybeans to close at 109,000 contracts long and they sold 1,000 contracts of wheat to close at 118,000 contracts short.  Specs bought 3,000 contracts of SBM and are long 56,000 contracts of Soybean Meal.

CIF bids for corn and soybeans have stabilized in the Gulf, wheat CIF is softer with August wheat at (30 bid-no offer), OND wheat (60 bid-no offer).  October soybeans were quoted (90 bid-92 ask).  August corn was quoted (no bid-60 ask), Sep was quoted (67-72), October corn was (69 bid-72 asked) and NOV corn was (69 bid-72ask).

Barge freight has firmed.  Freight firmed 60-70% in the last three weeks with the nearby   August at 250-325.  Harvest barges traded today at 350-525 for SEP, 500-515 for OCT and NOV at 325-450.

Live Cattle futures were lower losing $0.40 to $0.55; Feeder Cattle were lower, and Lean Hog futures were $1.75 to $2.50 higher.  August Live Cattle closed at $115.93, down $0.40 and October closed at $113.98, down $0.55.  August Feeder Cattle closed at 148.65, down $0.43 and October Feeder Cattle closed at $143.88, down $0.38.  Lean Hogs were higher in the majority of the options in the Lean Hog market.  October closed at $62.50, up $2.50.  Cash Hogs are called steady to $2 higher on Tuesday and Cash Cattle are called steady to $2 higher after late week trades at $189-192 in the beef and $118-119 live.  The Pork Cutout finished at $79.22, up $3.27.  Beef Feedlots are asking $121-122 in the South and $192-194+ in the beef after seeing some offers late week trade at $189-191.

Fescue prices were quite strong during the 2016 Harvest.  We paid prices to range from $0.48 to $0.50 per pound.  A good fescue fertility program involves the addition of 40 lbs. of nitrogen per acre in late August, followed by an application of nitrogen, phosphorus and potassium in the spring.  You can spray 2,4-D and Dicamba for weeds in either the spring or fall.  If you have a very heavy infestation of weeds, you might consider doing both.

Please mark your calendar for our annual “Tech Park Field Day”! Wednesday, August 24, 2016 12:00 pm to 2:00 pm and 5:00 pm to 7:00 pm at the I-55 Tech Park. Join us for population studies, herbicide trials, the latest seed varieties, triad pant hormone trials, and much more! You will get the chance to visit and learn from top agronomy experts, seed, fertilizer, and chemical vendors, and implement dealers. Food and drinks will also be provided! RSVP by Friday August 12th by calling 573-547-4569, emailing agri@buchheits.com, or at: http://www.buchheitagri.com/tech-park-field-day-registration/

We have updated our test plot results on our website, you can check out our 2015 corn yields and some 2014 soybean and corn yields at:  http://www.buchheitagri.com/tech-park-data

Be sure to check out our website at:  www.buchheitagri.com  and see the marketing information available.  If you scroll down on the front page you will find our market info page supported by AgriCharts.  If you examine the left hand side of that page you will discover the options that allow you to create price graphs or charts and also to check on historical spread information.