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Corn, Soybean Prices Trade Mixed Friday

Wheat is higher.

DES MOINES, Iowa -- On Friday, the CME Group’s farm markets trade mostly higher, with the exception of a lower soybean market.

In early trading, the December corn futures are ¼¢ higher at $3.52, while March futures are ½¢ higher at $3.65.

November soybean futures are 3¢ lower at $9.56; January soybean futures are 3¢ lower $9.67.

September wheat futures are 1¢ higher at $4.56.

December soy meal futures are 30¢ per short ton lower at $311.20. December soy oil futures are 0.09¢ lower at 32.73¢ per pound. 

In the outside markets, the Brent crude oil market is 11¢ lower, the U.S. dollar is lower, and the Dow Jones Industrials are 37 points lower.

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Thursday’s Grain Market Review

On Thursday, the USDA’s weekly export sales and fresh sales cannot trump better yield reports and an anticipated bearish quarterly Grain Stocks Report Friday.

At the close, the December corn futures finished 1½¢ lower at $3.52½, while March futures settled 1½¢ lower at $3.65¼.

November soybean futures closed 6¢ lower at $9.59½; January soybean futures finished 6¢ lower $9.70¼.

September wheat futures closed 6½¢ lower at $4.55.

December soy meal futures finished $1.80 per short ton lower at $311.50. December soy oil futures finished 0.40¢ lower at 32.82¢ per pound. 

In the outside markets, the Brent crude oil market is 65¢ lower, the U.S. dollar is lower, and the Dow Jones Industrials are 40 points higher.

On Thursday, the USDA weekly Export Sales Report showed stronger than expected soybean sales, less corn.

  • Corn: 320,200 metric tons (mt) vs. the trade’s expectations of between 450,000-850,000 mt
  • Soybeans: 2.99 million mt vs. the trade’s expectations of between 1,800,000-2,500,000 mmt
  • Soybean meal: 301,800 mt vs. the trade’s expectations of between 125,000-250,000 mt
  • Wheat: 435,600 mt vs. the trade’s expectations of between  250,000-450,000 mt

Separately Thursday, private exporters reported to the USDA the following activity:

  • Export sales of 233,800 mt of corn for delivery to unknown destinations during the 2017/2018 marketing year 
  • Export sales of 132,000 mt of soybeans for delivery to unknown destinations during the 2017/2018 marketing year 

The marketing year for corn and soybeans began September 1.

At midsession, the December corn futures are 1¾¢ lower at $3.52, while March futures are 1½¢ lower at $3.65. November soybean futures are 4½¢ lower at $9.61, January soybean futures are 4½¢ lower $9.71. September wheat futures are 6¢ lower at $4.55. December soy meal futures are $1.30 per short ton lower at $312.00. December soy oil futures are 0.34¢ lower at 32.88¢ per pound. In the outside markets, the Brent crude oil market is 32¢ lower, the U.S. dollar is lower, and the Dow Jones Industrials are 35 points higher.

Mike North, Commodity Risk Management Group analyst, says the markets are not expected to move for awhile.

“You have the USDA quarterly Grain Stocks Report Friday, end of month and end of quarter approaching. So, investors have a lot of considerations on their minds right now,” North says.

Even though the trade is seeing some end-user buying and technical support to help the markets have reason to go higher, that is all trumped by little farmer-selling.

Whether a farmer is selling during this harvest season depends on their cash flow and storage space, North says.

“Farmers have their hands full regarding their grain marketing decisions right now,” North says. “One one hand, there are farmers capitulating on old crop and some new crop, selling into this low market to be able to have cash flow for bills.”

He adds, “Meanwhile, those farmers who have a better cash flow, own more ground vs. rent, and have storage space may be able to wait out those really wide basis prices that are out there.”

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Wednesday’s Grain Market Review

After trading mixed, Wednesday, the CME Group’s farm markets closed higher.

At the close, the December corn futures settled 1¾¢ higher at $3.54, while March futures settled 1½¢ higher at $3.65.

November soybean futures ended 2¢ higher at $9.65½; January soybean futures settled 2¼¢ higher $9.76¼.

September wheat futures closed 7¾¢ higher at $4.61½.

December soy meal futures finished 20¢ per short ton higher at $313.30. December soy oil futures finished 0.23¢ lower at 33.22¢ per pound. 

In the outside markets, the Brent crude oil market is 30¢ higher, the U.S. dollar is higher, and the Dow Jones Industrials are 66 points higher.

Brian A. Rydlund, market analyst for CHS Hedging, says the markets appear to be satisfied with waiting for Friday’s USDA Report.

“Market is bearish as investors hear about “better-than-we-thought” yields in soybeans and fears the same will happen in corn,” Rydlund says.

“It ain’t last year’s crop, but it’s not as bad as we may have thought in August. And USDA’s August yields seem “less” crazy today than when issued back then and repeated in Sept report,” Rydlund says.

The markets seem range bound, for now, in futures, he says.

“Now we await Friday’s USDA Stocks report, but I doubt it helps price,” Rydlund says.

As farmers await drier weather in the western Corn Belt, this week, combines roll in soybean fields in the eastern Corn Belt, due to much better weather.    

On Wednesday, private exporters reported to the USDA export sales of 132,000 metric tons of soybeans for delivery to China during the 2017/2018 marketing year.

The marketing year for soybeans began September 1.

 

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Tuesday’s Grain Market Review

On Tuesday, the CME Group’s soybean market fell under pressure from better harvest yield reports and rain in Brazil.

At the close, the December corn futures settled 1½¢ lower at $3.52¼, while March futures finished 1¼¢ lower at $3.65¼.

November soybean futures finished 7¾¢ lower at $9.63½; January soybean futures settled 7¾¢ lower $9.74.

September wheat futures closed ¼¢ lower at $4.53¾.

December soy meal futures closed $1.20 per short ton lower at $313.10. December soy oil futures settled 0.56¢ lower at 33.45¢ per pound. 

In the outside markets, the Brent crude oil market is 36¢ lower, the U.S. dollar is higher, and the Dow Jones Industrials are 8 points higher.

Jason Roose, U.S. Commodities grain analyst, says harvest activity is pressuring the soybean complex.

"Grains are trading lower again today, with soybeans the focus on better yield estimates on early harvested crops. Meanwhile, weather leans negative with rain in South America," Roose says.

 

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Monday’s Grain Trade Review

On Monday, the CME Group’s soybean market finished double digits lower, with pressure from expanding harvest activity.

At the close, the December corn futures finished unchanged at $3.53½, while March futures finished ½¢ higher at $3.66.

November soybean futures ended 13¢ lower at $9.71¼; January soybean futures settled 12¾¢ lower $9.81¾.

September wheat futures closed 4½¢ higher at $4.54.

December soy meal futures closed $4.70 per short ton lower at $314.30. December soy oil futures closed 0.21¢ lower at 34.01¢ per pound. 

In the outside markets, the Brent crude oil market is $1.60 higher, the U.S. dollar is higher, and the Dow Jones Industrials are 69 points lower.

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