October 23, 2015

Corn

CBOT Prices Two Rivers Cash Bid Prices
Dec ‘15 379’6 +1’4 NC ‘15 352’0 +12’0
Mar ‘16 388’6 +0’6 Dec ‘15 346’0 +1’0
May ‘16 394’6 +1’2 Jan ‘15 355’0 +7’0
Jul ‘16 399’0 +1’6 Feb ‘15 357’0 +6’0

 

Corn futures posted slight gains today, but has to be considered a victory as futures rallied late in the session to post a positive number. The outside markets were bearish as the dollar was 1.6% higher, crude oil was lower, and the stock market closed with 158 point gains in the Dow.

 

After the close, the Commitment of Traders report showed a large selling of futures from the managed money. They sold 61,678 futures on the week ending October 20.  Wheat futures selling was also heavily sold as the managed money sold 38,585 contracts.  The cattle on feed report will be viewed as bearish next week as cattle on feed were at 102.3% of last year vs. 101.8% expected.  Cattle placed on feed last month were at 95.9% of last year vs. 93.9% expected.  And finally, cattle marketed last month was at 97.6%, which was about as expected.

 

Soybeans

CBOT Prices Two Rivers Cash Bid Prices
Nov ‘15 895’4 -3’2 NC ‘15 828’0 -3’0
Jan ‘16 896’0 -5’0 Dec ‘15 836’0 -5’0
Mar ‘16 898’2 -4’4 Jan ‘15 836’0 -5’0
May ‘16 902’2 -4’0 Feb ‘15 839’0 -4’0

 

Soybeans had a tough day today as traders attempted to “pin” the closing price near $9.00 futures on the day that options were expiring. Traders will often attempt to pin the closing price to a level that benefits their current holdings.  So today’s close at $8.95 ½ means that the $9.00 put options will be exercised and the $9.00 calls will expire worthless.  Also, that means that there will be some fresh new short position holders on Monday.  We’ll see if the market tests their patience and pocket books.

 

The USDA announced the sale of 208,000 tons of beans to China. The managed money traders were slight buyers of soybeans, only about 2,200 bought for the week.

October 23, 2015