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Corn, Soybean Prices End Stronger Friday

The trade is digesting whether the markets were oversold yesterday.

DES MOINES, Iowa -- On Friday, the grain markets partially recovered some of the huge losses from yesterday’s hard down move.

At the close, the September corn futures finished 6½¢ higher at $3.76, and December futures closed 6½¢ higher at $3.89½.

August soybean futures ended 13½¢ higher at $9.89; November soybean futures finished 14¢ higher at $10.01½.

September wheat futures settled 1¢ lower at $5.10¾.

December soy meal futures ended $6.10 per short ton higher at $331.20. December soy oil futures closed 0.18¢ higher at 33.68¢ per pound. 

In the outside markets, the Brent crude oil market is $0.35 per barrel higher, the U.S. dollar is lower, and the Dow Jones Industrials are 84 points higher.

Jack Scoville, The PRICE Futures Group’s senior market analyst, says that the short-term forecasts seem to be hotter and drier again. 

“Still a weather market. Some ideas are that yesterday was overdone and that a short-term recovery is possible. The weather is supposed to get better in 11 to 14 days, but even so, we’ve got a crop with some serious problems out there,” Scoville says. 

Ohio corn is seen as variable to very good, with the bean crop mostly pretty bad, Scoville says.

Also, the big rains have been stunting growth in Wisconsin, while dry weather in the southern half of Illinois stresses crops, Scoville says. 

“Plus all the heat out in the western Corn Belt continues to stress crops. We should try to rally back close to the highs, next week I suspect. And then we find out what we really got market-wise,” Scoville says.

Cory Bratland, Kluis Commodities broker, says the markets face improved crop weather, which is keeping a lid on rallies.

“The grain markets could be putting in a near-term low today. July futures go off the board at noon today, and we have a strong tendency to sell off during those weeks and put in lows,” Bratland stated in a daily letter to customers.

 

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Thursday’s Grain Market Review

On Thursday, the CME Group’s farm markets continue to fall out of bed.

The pressure is coming from improved crop weather forecasts and follow-through bearishness from yesterday’s USDA Supply/Demand Report that left U.S. yield estimates unchanged and supplies high.

At the close, the September corn futures finished 15¾¢ lower at $3.69¾, while December futures finished 15¾¢ lower at $3.83.

August soybean futures settled 45¼¢ lower at $9.75½; November soybean futures ended 46½¢ lower at $9.87½.

September wheat futures closed 25¼¢ lower at $5.11¾.

August soy meal futures settled $18.10 per short ton lower at $317.90. August soy oil futures closed 0.45¢ lower at 33.07¢ per pound. 

In the outside markets, the Brent crude oil market is 59¢ per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 25 points higher.

On Thursday, the USDA Weekly Export Sales Report indicated that the latest exports for corn, soybeans, and wheat were all within the trade’s expectations.

  • Wheat: 357,700 metric tons (mt) vs. the trade’s expectations of between 350,000 and 550,000 mt
  • Corn: 440,700 mt vs. the trade’s expectations of between 350,000 and 700,000 mt
  • Soybeans: 683,000 mt vs. the trade’s expectations of between 250,000 and 750,000 mt
  • Soy meal: 140,700 mt vs. the trade’s expectations of between 25,000 and 200,000 mt

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Wednesday’s Grain Market Review

On Wednesday, the CME Group’s farm markets have turned lower, as investors consider the rain that has fallen in the Corn Belt overnight.

Plus, the trade is preparing for today's USDA Supply/Demand Report to be released at 11 a.m. CT.

In early trading, the September corn futures are 6¢ lower at $3.86, while December futures are 6¼¢ lower at $4.08.

August soybean futures are 7¾¢ lower at $10.21; November soybean futures are 7¾¢ lower at $10.35.

September wheat futures are 4½¢ lower at $5.48.

August soy meal futures are $2.10 per short ton lower at $336.60. August soy oil futures are 0.21¢ lower at 33.60¢ per pound. 

In the outside markets, the Brent crude oil market is $1.07 per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 126 points higher.

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Tuesday’s Grain Market Review

Soybeans closed higher on Tuesday as investors returned to trading fundamentals after being lower most of the morning. Corn and wheat finished mixed. 

Hot, dry weather is expected to continue for at least the next week in much of the Northern Plains. Spotty showers have been reported in parts of Montana and North Dakota, but the heat will rebuild in the next few days, according to Commodity Weather Group.

A heat advisory is in effect for the eastern half of South Dakota as indexes are forecast to reach as high as 105°F., according to the National Weather Service. Heat advisories are also in effect for parts of Nebraska, Iowa, Kansas, and Missouri today with indexes as high as 108°F., the NWS said in a report. 

Prices also chopped around because the USDA will release its World Agricultural Supply and Demand Estimates and Crop Production reports on Wednesday. Analysts said investors didn’t want to go into the reports too long in the event of a bearish surprise. 

Soybean futures for November delivery rose 2¼¢ to $10.41¾ a bushel on the Chicago Board of Trade. Soy meal added a dime to $345.70 a short ton, and soy oil gained 0.11¢ to 34.28¢ a pound. 

Corn futures closed down 1¼¢ to $4.13½ a bushel. 

Wheat futures for September delivery rose 1¼¢ to $5.51¼ a bushel in Chicago. Kansas City futures fell 1¾¢ to $5.55½ a bushel. 

 

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