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Corn, Beans Close Higher Ahead of Next Week’s Crop Tour

Investors Turn to Buyers Despite Uncertainty Over What Scouts Will Find.

Corn, beans, and wheat all closed higher on Friday despite uncertainty over next week’s crop tour. 

Scouts will spread through the Midwest and hit more than 2,000 corn and bean fields in a bid to determine yield and production. The weather this year has been variable, at best, with some areas receiving ample rainfall and others staying extremely dry, leaving doubts about what the scouts will find.

The U.S. Department of Agriculture last week unexpectedly raised its corn and soybean yield projection in a monthly report. Many growers and traders alike have expressed doubts about the accuracy of the USDA report due to dry weather in some areas and excessive precipitation in others. 

About 62% of the U.S. corn crop was rated good or excellent as of Sunday, while 59% of the soybean crop earned top ratings, according to the USDA. 

Investors also may be more bullish after a University of Michigan consumer sentiment report on Friday topped expectations. The U of M index was reported at a reading of 97.6, the highest level since January, topping expectations for a 94 reading. 

Corn futures for December delivery rose ¾¢ to $3.65 a bushel on the Chicago Board of Trade.

Soybean futures for November delivery closed up a nickel to $9.38 a bushel. Soy meal futures rose 30¢ to $300.30 a short ton, and soy oil added 0.53¢ to 34.08¢ a pound.

Wheat for December delivery rose 3¢ to $4.43¾ a bushel in Chicago. Kansas City futures gained 1¾¢ to $4.43¾ a bushel.

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Thursday’s Grain Market Review

DES MOINES, Iowa -- On Thursday, the CME Group’s farm markets diverged, with soybeans finishing higher and corn and wheat lower.

At the close, the September corn futures finished 2¢ lower at $3.50. December futures finished 2¼¢ lower at $3.64¼.

November soybean futures settled 7¾¢ higher at $9.33, and January soybean futures settled 7¾¢ higher at $9.41.

September wheat futures ended 6¼¢ lower at $4.40.

December soy meal futures settled $2.60 per short ton higher at $300.70. December soy oil futures closed $0.37 higher at 33.55¢ per pound. 

In the outside markets, the Brent crude oil market is $0.34 per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 197 points lower.

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Wednesday’s Grain Market Review

On Wednesday, the CME Group’s farm markets closed mixed, as the soybean market reversed higher.

At the close, the September corn futures finished 2¼¢ lower at $3.53, and December futures ended 1¾¢ lower at $3.66¾.

September soybean futures closed 1¼¢ higher at $9.23; November soybean futures ended 2¢ higher at $9.26¼.

September wheat futures closed 9¢ lower at $4.47.

December soy meal futures ended $1.30 per short ton lower at $298.10. December soy oil futures finished 0.14¢ higher at 33.18¢ per pound. 

In the outside markets, the Brent crude oil market is 80¢ per barrel lower, the U.S. dollar is lower, and the Dow Jones Industrials are 15 points higher.

Jack Scoville, The PRICE Futures Group’s senior market analyst, says producers, industry, and smaller to medium-size specs are not much interested in this market. 

“I think most of the trading has been follow-through fund selling into commercial buying. I also think that the selling is running out of steam now, and we can start to turn sideways now for a while,” Scoville says. 

“The news has been quiet since the report, but the higher move in the dollar this week has hurt buying interest,” he says.

Bob Linneman, Kluis Commodities broker, says today’s lower prices are a continuation of yesterday’s trade action.

“Grain prices saw more selling pressure on Tuesday. December corn was unable to maintain the $3.70 support. November soybeans have come within 15¢ of the June low,” Linneman stated in a daily note to customers.

“Momentum indicators have reached very oversold levels this week. The bulls need a story that will quickly turn the tides. Right now, the weather pattern favors the bears, and forecasts suggest it will continue to stay that way,” he said.

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Tuesday’s Grain Market Review

On Tuesday, the CME Group’s farm markets closed weaker, with favorable crop weather providing most of the pressure.

At the close, the September corn futures finished 7½¢ lower at $3.55, and December futures settled 7¾¢ lower at $3.68.

September soybean futures closed 11¢ lower at $9.21¾; November soybean futures closed 14¢ lower at $9.24¼.

December wheat futures settled 11¾¢ lower at $4.56.

December soy meal futures finished $3.30 per short ton lower at $299.40. December soy oil futures closed 0.73¢ lower at 33.04¢ per pound. 

In the outside markets, the Brent crude oil market is 1¢ per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 4 points higher.

Jason Roose, U.S. Commodities grain analyst, says weekly crop updates control the market’s direction.

“Grain prices continue to see declining prices on improving crop conditions, with no sign of extended heat and forecasts of rain. Also, the stronger dollar is giving the grains resistance, making us less competitive in the world market,” Roose says.

Al Kluis, Kluis Commodities, says the markets have headwinds right now, but there could be light at the end of the tunnel.

“The negative USDA reports dropped grain prices for two days before prices stabilized early this week. I expect the grain markets to move sideways in a narrow trading channel until more is known about this year’s crop size. Grain prices bottomed in late August 2016, and it looks like the timing could be the same for 2017,” Kluis stated in a weekly Successful Marketing newsletter.

On Tuesday, the USDA announced a fresh batch of soybean sales. Private exporters reported to the USDA the following activity:

  • Export sales of 132,000 metric tons of soybeans for delivery to China during the 2017/2018 marketing year.
  • Export sales of 132,000 metric tons of soybeans for delivery to unknown destination during the 2017/2018 marketing year.

The marketing year for soybeans began September 1.

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Monday’s Grain Market Review

On Monday, the CME Group’s farm markets trimmed losses, with corn and wheat even finishing slightly higher.

Big supplies, better crop ratings expected in Monday’s USDA Crop Progress Report, and a stronger U.S. dollar are capping gains.

At the close, the September corn futures finished 2¢ higher at $3.62¾, while December futures finished 1½¢ higher at $3.76¼.

September soybean futures closed 5½¢ lower at $9.32¾; November soybean futures closed 6¾¢ lower at $9.38¼.

September wheat futures ended 1¾¢ higher at $4.41.

December soy meal futures closed $1.50 per short ton lower at $302.70. December soy oil futures closed 0.22¢ lower at 33.77¢ per pound. 

In the outside markets, the Brent crude oil market is $1.23 per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 146 points higher.

 

 

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