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Soybean Prices Close 31¢ Lower Thursday
DES MOINES, Iowa -- On Thursday, the CME Group’s farm futures reacted negatively to Brazilian news of its President being caught in a bribery scandal sending its Real currency plunging.
At the close, the July corn futures finished 5 1/2¢ lower at $3.66, while December futures closed 5¢ lower at $3.84.
July soybean futures ended 31¢ lower at $9.44, November soybean futures closed 23¢ lower at $9.44.
July wheat futures ended 1 1/4¢ lower at $4.25 3/4.
July soy meal futures closed $7.80 per short ton lower at $307.50. July soy oil futures closed $0.71 lower at 32.44¢ per pound.
In the outside markets, the Brent crude oil market is $0.45 per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 110 points higher.
Soybeans have dropped significantly due to a falling Brazilian real currency. An investigation is under way into a bribery scandal involving the South American country’s president. The falling real makes Brazilian products more attractive to global buyers.
"The Real is sharply lower and Brazilian President Temer is caught on tape taking bribes down there. That will do it," says Jack Scoville, PRICE Futures Group's senior market analyst.
Wednesday’s Grain Market Review
On Wednesday, the CME Group’s farm markets settled mostly higher.
At the close, the July corn futures settled 3½¢ higher at $3.71, while December futures finished 3¾¢ higher at $3.89.
July soybean futures closed ¼¢ higher at $9.76; November soybean futures closed unchanged at $9.67.
July wheat futures finished 2¾¢ higher at $4.27.
July soy meal futures finished $1.70 per short ton lower at $315.30. July soy oil futures finished 0.14¢ higher at 33.15¢ per pound.
In the outside markets, the Brent crude oil market is 54¢ per barrel higher, the U.S. dollar is lower, and the Dow Jones Industrials are 321 points lower.
Jason Roose, U.S. Commodities grain analyst, says investors are covering short positions. “Most of the grain markets are up today. The support is coming from a nice short covering rally, on anticipation that crop rating will be average with the mixed forecast even though planting has been aggressive in most states,” he says.
Roose adds, “The weak dollar is also gaining national attention, which would be a bright spot for future demand if the weakness continues.”
Tuesday’s Grain Market Review
On Tuesday, the CME Group’s soybean market felt the support of buyers to end the day on a double-digit rally.
At midsession, the July corn futures are 2¢ lower at $3.65; December futures are 1¾¢ lower at $3.83.
July soybean futures are 2¾¢ higher at $9.68, and November soybean futures are ¼¢ lower at $9.60.
July wheat futures are 3¢ lower at $4.20.
July soy meal futures are 50¢ per short ton higher at $313.00. July soy oil futures are 0.04¢ higher at 33.06¢ per pound.
In the outside markets, the Brent crude oil market is 1¢ per barrel lower, the U.S. dollar is lower, and the Dow Jones Industrials are 15 points higher.
Deanna Hawthorne-Lahre, StatFutures cofounder and trader, says this market is just so flatline.
“The damage done in the hard red winter wheat areas was marginal, and the wheat market is eroding as we head into harvest,” Hawthorne-Lahre says. “Investors are looking for areas to take a shot from the long side, but volatility indicates there is no hurry, as do the spreads.”
She adds, “The corn market should be checked for a pulse. Haven’t seen a market this dead since 2002 or 1985. Soybeans got a freckle of life with some business Tuesday from China, but it feels iffy to me at the moment.”
The July/November soybean futures spread will be an indicator if this market comes alive again, she says.
“With plantings moving along, in spite of some weather issues and, of course, very little drought around, this could be a long year in a trading range,” Hawthorne-Lahre says.
Monday’s Grain Market Review
On Monday, the CME Group’s farm markets sold off strength in soybeans, while corn remained in negative territory.
At the close, the July corn futures settled 3½¢ lower at $3.67½, and December futures closed 3¾¢ lower at $3.85.
July soybean futures finished 2¾¢ higher at $9.65¾; November soybean futures finished 1¼¢ higher at $9.61.
July wheat futures finished 9¾¢ lower at $4.23.
July soy meal futures closed 90¢ per short ton lower at $312.40. July soy oil futures settled 0.25¢ higher at 33.09¢ per pound.
In the outside markets, the Brent crude oil market is 99¢ per barrel higher, the U.S. dollar is lower, and the Dow Jones Industrials are 93 points higher.
Dustin Johnson, EHedger LLC grain analyst, says weather and rumors about China are moving the market.
“All we have heard is that China was rumored to be buying U.S. beans. No confirmations on the Chinese buying and very little weather to support the market one way or another are the factors that the investors are using to place bets,” Johnson says.
“There is still high conviction that soybeans are overpriced to corn and the market may be working some of those position holders out,” he adds.