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ticker test 2

ticker test 2

Wed, 6 Mar 2013|
Transcript

Closing farm prices for Tuesday March 5th. First off, two big news items on this day, new trading hours proposed by the CME group that will take effect April 7th. These trading hours will have to be finalized by the CFTC, but again, the announcement came out today. Essentially, what the CME group will be doing is making their Sunday night market open at 7:00 and then the market closes electronically that next morning at 7:45. So, that's a slight adjustment-- and then to start the week on Monday morning, the electronic will take a break from 7:45 to 8:30 in the morning, so no trading at all between 7:45 in the morning and 8:30. And then the floor and the electronic fires back up on Monday morning at 8:30 in the morning as opposed to the original start right now of 9:30. So, we're moving up the trading for the regular hours of Monday through Friday one hour and then it'll close on the floor at 1:15 versus the 2:00 close right now. So they're moving up the open, moving up the close and that we're gonna trade 17.5 hours of grains and oil seeds products versus the 21 right now. And all of this is because of many folks-- I mean, customers of the CME Group having concerns that the hours were expanded but the volume didn't increase. And again, folks just would like to go back to more normal house. So, again, 17.5 hours of trading now will take effect April 7th. Of course, that's in-- if the CFTC will approve it, but there isn't seen to be any problem with that according to the CME group. Also, the Dow Jones Industrial Average on a record high today of 14,254 points, now the NASDAQ did not come close this record set in 2000, but the Dow did and it traded sharply higher most of the day as a result. Now to the farm prices; May corn finished up at nickel at 709 May beans at 4 at 1466 and May wheat up 3 at 706. One big piece of news dimension here for soy beans, 645,000 of US soy beans were sold this morning according to the USDA by China and also an unknown buyer believed to be China for the new marketing year-- this current marketing year as well and that really boosted the market and of course, we had the 25-cent rally at the close on yesterday's market. So many traders were saying, maybe that's where we got the rally yesterday. The news came out that some folks learned of it last night or yesterday afternoon. But the USDA did not announce and told today. The market did run up a little bit on that news today and we'll see now if that demand continues to boost the soy bean market for the rest of the week but that is one time purchase as huge just to give you a comparison in Brazil in the month of February about 900,000 tons were exported that's versus 1.6 million last year. But again, 645,000 ton one time sale is very large and it could have an impact-- positive impact for the market going forward here for the next couple of days. Corn was helped by firm cash prices today and wheat was boosted by more talk of feed use. If you look at the corn and wheat prices, both of them are about the same corn finish down-- or finish today at 709, wheat at 706, so your live stockers have a choice there whether to feed corn or wheat and some were saying they're gonna-- now begin to choose wheat. Those are your farm prices for this Tuesday Mach 5th. I'm Mike McGinnis for agriculture.com.

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