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All Farm Markets Ended Higher Friday

Demand and crop weather support bean prices.

DES MOINES, Iowa -- On Friday, the CME Group’s corn, soybean, and wheat markets ended on strength.

At the close, the March corn futures settled 5¢ higher at $3.74½, and new-crop December 2017 futures closed 3½¢ higher at $3.99¼ per bushel.

March soybean futures finished 8½¢ higher at $10.59; November 2017 soybean futures closed 4¢ higher at $10.30.

March wheat futures settled 5½¢ higher at $4.49.

March soy meal futures settled $3.70 a short ton higher at $342.10. March soy oil futures ended 0.06¢ lower at 34.61¢ per pound. 

In the outside markets, the Brent crude oil market is $0.90 per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 107 points higher.

On Friday, heavy rains in Brazil have halted the harvest of soybeans and the planting of that country’s second corn crop, known as safrihna. The seven-day weather forecast calls for the rains to continue across northern Argentina and parts of Brazil, according to the National Oceanic and Atmospheric Association.

Also, private exporters reported to the U.S. Department of Agriculture export sales of 140,000 metric tons of soybeans for delivery to unknown destinations during the 2016/2017 marketing year.

The marketing year for soybeans began September 1.

 

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Thursday’s Grain Market Review

On Thursday, the USDA’s release of its February Supply/Demand Report and its WASDE Report is keeping a lid on the early trading of the grains.

At the open, the March corn futures are 1½¢ lower at $3.69, and new-crop December 2017 futures are 1½¢ lower at $3.96 per bushel.

March soybean futures are 2½¢ lower at $10.56, while November 2017 soybean futures are 3¼¢ lower at $10.25.

March wheat futures are ¼¢ lower at $4.32.

March soy meal futures are $1.40 short ton lower at $339.80. March soy oil futures are 0.17¢ higher at 34.86¢ per pound. 

In the outside markets, the Brent crude oil market is 78¢ per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 37 points higher.

On Thursday, the USDA released its weekly Export Sales Report. Wheat and corn exports came in at the top end of expectations.

  • Wheat: 543,600 metric tons (mt) vs. the trade’s expectations of 300,000-500,000 mt
  • Corn: 1.06 million mt vs. the trade’s expectations of 800,000-1,100,000 mt 
  • Soybeans: 536,300 mt vs. the trade’s expectations of 500,000-800,000 mt
  • Soybean meal: 348,000 mt vs. the trade’s expectations of 100,000-300,000 mt 

 

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Wednesday’s Grain Market Review

On Wednesday, the trade rallied the soybean futures market sharply higher, ahead of tomorrow’s USDA February Supply/Demand Report and its WASDE Report.

At the close, the March corn futures settled 2¼¢ higher at $3.70¾, and new-crop December 2017 futures finished 1¼¢ higher at $3.97½¢ per bushel.

March soybean futures closed 16¢ higher at $10.58¾, while November 2017 soybean futures ended 8¾¢ higher at $10.28¼.

March wheat futures finished 1¾¢ lower at $4.32½.

March soy meal futures ended $5.30 short ton higher at $341.20. March soy oil futures closed 0.39¢ higher at 34.69¢ per pound. 

In the outside markets, the Brent crude oil market is 27¢ per barrel higher, the U.S. dollar is lower, and the Dow Jones Industrials are 28 points lower.

“Soybeans are rising on a two-week high in palm oil. That, coupled with a technical breakout on the charts, has given rise to higher prices in the soybean complex today. Corn and wheat are struggling to follow along,”  says Mike North, Commodity Risk Management Group analyst.

Bob Linneman, Kluis Commodities grain broker, says with this week’s gains, corn is now within a few pennies of making new multimonth highs. Soybeans have nearly retraced 50% of the decline from the January 18 high to the February 1 low.

“If the USDA report on Thursday is friendly, then it could lead to breakout highs for the grains. If this happens, I would expect to see momentum money jump in on the long side,” Linneman stated in a daily note to customers.

 

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Tuesday’s Grain Market Review

On Tuesday, the CME Group’s farm futures prices remain slightly in the green, with the traders anticipating this week's USDA Supply/Demand Report.

At the close, the March corn futures finished 4¾¢ higher at $3.68½, and new-crop December 2017 futures finished 4¼¢ higher at $3.96¼ per bushel.

March soybean futures finished 6¾¢ higher at $10.42¾, while November 2017 soybean futures closed 2½¢ higher at $10.19½.

March wheat futures closed 8¼¢ higher at $4.30¾.

March soy meal futures closed $3.10 short ton higher at $335.90. March soy oil futures closed 0.14¢ lower at 34.30¢ per pound. 

In the outside markets, the Brent crude oil market is 86¢ per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 37 points higher, reaching a new record high, along with the NASDAQ.

Jack Scoville, The PRICE Futures Group’s senior market analyst, says it has been mostly a slow day without much news. The Japan sale is noted in corn, nothing going on for wheat.  

“I think there is some Trump nerves in the market to account for some of the lack of volume. People are also waiting for the WASDE, and the way the market acts, we should get increased export demand in all of the markets and increased ethanol demand in corn,” Scoville says. 

“Usually this is a nothing report, so those changes would be noteworthy. USDA can kick the export demand down the road a month or two, but the buying has been there and the grain is getting shipped. So, changes will be coming – if not this month, then soon,” he says.

On Tuesday, the USDA announced fresh corn sales.

Private exporters reported to the U.S. Department of Agriculture export sales of 128,000 metric tons of corn for delivery to Japan during the 2016/2017 marketing year.

The marketing year for corn began September 1.

 

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Monday’s Grain Market Review

On Monday, the CME Group’s soybean market closes nearly double digits higher.

At the close, the March corn futures settled 1½¢ lower at $3.63¾, and new-crop December 2017 futures finished ¾¢ lower at $3.92 per bushel.

March soybean futures finished 9¢ higher at $10.36, while November 2017 soybean futures ended 7¼¢ higher at $10.17.

March wheat futures finished 7¾¢ lower at $4.22½.

March soy meal futures closed $1.20 per short ton higher at $332.80. March soy oil futures closed 0.58¢ higher at 34.44¢ per pound. 

In the outside markets, the Brent crude oil market is 77¢ per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 30 points lower.

DeAnne Hawthorne-Lahre, StatFutures cofounder and trader, says that the crop weather in South America could be supportive.

“The soybean strength is most certainly from rains in Argentina and Brazil that could possibly become a problem. Plus, the U.S. export buying continues to be strong. Markets are flatlined and waiting for some guidance from WASDE, but most of the traders are waiting for the USDA Acreage Report at the end of March,” she says.

Al Kluis, Kluis Commodities, sees the soybean market putting in a low if the market can finish higher than it started today.

“After two weeks down in the soybean market and with Asia getting back to work this week, we are likely to again see some huge soybean export sales,” Kluis told customers in a daily note.

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