November 12th, 2008
CLOSING CASH GRAIN PRICES
for Lesterville Feed & Grain, Inc.
CORN -- 3.15
SOYBEAN - 7.85
OATS -- please call for price
W Wheat- 5.00
"Del" -- short for DELIVERY PRICE!!!
Chicago board of trade close
Dec corn closed down 43/4 3691/2
Mar corn closed down 51/2 3861/4
Nov beans closed down 223/4 8851/4
Jan
beans closed down 21
895 Dec
wheat closed up
41/2
5751/2 Closing
comments for TOD
Corn- corn futures had an interesting ride today. Futures started lower on fact energies traded lower. Lack of confidence in the financial markets also sent US equity markets lower. Near session lows, concentrated fund buying triggered buy stops above daily resistance levels. Prices accelerated on the upside as more stops were hit. Early buyers turned sellers near session high and offered resistance to prices into the close. Domestic US cash markets firmed on slow farmer selling. There remains concern that a prolonged recession could slow demand for feed and fuel but pipeline stocks are declining. US weather continues to slow completion of harvest. US export demand is also slow. This offers resistance to futures. East Europe wheat and corn plus South America corn remains a discount to US export prices. This limits US corn export demand. News that China eliminated their grain export tax offered resistance and raised concern about their domestic feed grain demand outlook.
Soybeans- soybeans closed down 21 cents and near 8.94 SF. BOZ was down 114 points and near 32.59. SMZ dropped 3.50 and settled near 266.0. Supply bulls gave up some of their positions as the Dow broke below key support and liquidation continued in crude oil. There remains concern that drop in US/global protein demand could reduce crush and raise soybean end stocks. This could weigh on prices until protein demand improves. Concern about lower soyoil prices weighed on palmoil prices. Drop in soyoil prices were despite talk of reduced US crush and good domestic buying of soyoil in Brazil. Talk of China eliminating export tax on grains, fertilizer and steel products raised concern about their domestic demand. Overall, dryness in Argentina could be supportive to prices if continued into the remainder of the crop season. US cash soybean prices are firming due to completion of harvest and a slowdown in farmer selling. Normally this would offer support esp to spreads. Still talk of lower demand and higher end stocks could widen spreads.
Wheat - had a good webinar today with customers of Milling and Baking. Key to wheat futures remain the direction of the current economic slowdown and impact on demand. Large global stocks of wheat offer resistance to future prices and is even cutting into demand for US corn export demand. Soyoil analyst reported on large supply of vegoils offers resistance to prices. Oversold tech outlook and drop in US crush could provide support to soyoil futures. Crude oil analyst remains bearish to prices due to slowdown in demand. Could though see a wide trading range between $40-70 if low prices begin to slow production. He was friendly Nat Gas. Cash domestic basis have firmed on slow farmer selling. HRW and HRS basis though may have rallied enough to trigger hedge selling. Talk of lower 2009 SRW acres could offer support to SRW basis. Today, one fund bought 1-2000 wheat contracts near session low. Some fund pushed the market through other fund stops. All of this trading was on the screen. New session highs original fund sold out their long position. WZ had a range of 5.07-5.55 and closed near 5.33 and up 9 cents.
ADMIS Comments