You are here

Corn, soybean markets end the week higher Friday

Wheat futures slip at the end of a good week.

DES MOINES, Iowa -- On Friday, corn futures finished with small gains and soybean prices strengthened.

At the close, the Sept. corn futures finished 2¾¢ higher at $3.33. Dec. corn futures ended 2¼¢ higher at $3.39¾.
 
Aug. soybean futures closed 4¼¢ higher at $8.98. November soybean futures settled 4¢ higher at $8.95.

Sep. wheat futures settled ½¢ lower at $5.34¼. 

Aug. soymeal futures closed $0.50 per short ton lower at $286.50. Aug. soy oil futures ended 0.65¢ higher at 29.92¢ per pound.

In the outside markets, the NYMEX crude oil market is $0.10 per barrel lower at $40.65. The U.S. dollar is lower, and the Dow Jones Industrials are 43 points lower.

“It is a pretty quiet day with some follow-though buying showing up,” says Jack Scoville of PRICE Futures Group. “The buying is mostly demand related as China has become much more active in buying our ag products. The weather is mixed but considered generally good for crops right now. We’re not expecting a bin-buster corn crop but a good crop either way. Beans are reported to be looking very good in central Illinois. All in all, it’s a slow Friday in the middle of the summer due to the mostly nonthreatening weather.”

Britt O’Connell of the Commodity Risk Management Group sees exports adding mild strength to today’s trading.

“China continues to show interest in purchasing U.S. soybeans, logging purchases of 522,000 tonnes yesterday, 389,000 tonnes on Wednesday, and 129,000 tonnes Tuesday.  “Unknown" purchases 351,000 tonnes are assumed to be China,” she says. 

-----------------------------------

DES MOINES, Iowa -- On Friday, corn, soybean and wheat futures are up slightly.

In early trading, the September corn futures are 1¾¢ higher at $3.32. Dec. corn futures 1¼¢ higher at $3.38¾.

 Aug. soybean futures are 1½¢ higher at $8.95. November soybean futures are 1¾¢ higher at $8.92¾.

Sep. wheat futures are 2¼¢ higher at $5.37½. 

Aug. soymeal futures are $0.50 per short ton lower at $286.50.  Aug. soy oil futures are 0.35¢ higher at 29.62¢ per pound.

In the outside markets, the NYMEX crude oil market is $0.09 per barrel lower at $40.84. The U.S. dollar is lower, and the Dow Jones Industrials are 39 points higher.

Bob Linneman of Kluis Commodity says, “The weather forecast does not appear to be damaging enough to sustain a rally. Granted, the forecast can change. However, the bears could be getting nervous about further major grain export sales announced between China and the U.S..”

“The heat likely negatively impacted corn yield in some areas across the Corn Belt,” he adds. “Those losses won’t be known until combines roll this fall. If the charts post a higher high and higher close today, then it may set the table for a strong start next week.”

Also on Friday, private exporters reported to the U.S. Department of Agriculture export sales of 126,000 metric tons of soybeans for delivery to unknown destinations during the 2020/2021 marketing year.

The marketing year for soybeans began Sept. 1.

-------------------------------------

On Thursday, the demand reports are feeding the market bulls.

The CME Group’s farm markets used demand news to close mostly higher.

At the close, the Sept. corn futures finished 4¢ higher at $3.30¾. Dec. corn futures ended 3½¢ higher at $3.37¼.
 
Aug. soybean futures closed 7¼¢ higher at $8.93¾. November soybean futures settled 8¼¢ higher at $8.91.

Sep. wheat futures settled 15¼¢ lower at $5.35¼. 

Aug. soymeal futures closed $1.20 per short ton higher at $287.00. Aug. soy oil futures ended 0.47¢ higher at 29.27¢ per pound.

In the outside markets, the NYMEX crude oil market is $0.42 per barrel lower at $40.78. The U.S. dollar is higher, and the Dow Jones Industrials are 197 points lower.

Britt O’Connell, cash adviser for Commodity Risk Management Group, says both corn and soybeans are trading higher.  

“Corn does not have a significant storyline to hang its hat on, but is likely looking to go fill a gap that was left on the chart from $3.38 to $3.40. Soybeans are back testing old resistance and looking to challenge $9.00. China continues to be an active buyer and we have yet to move into the time of year when soybeans are most sensitive to weather,” O’Connell says.  

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

  • Export sales of 522,000 metric tons of soybeans for delivery to China. Of the total, 132,000 metric tons is for delivery during the 2019/2020 marketing year and 390,000 metric tons is for delivery during the 2020/2021 marketing year.
  • Export sales of 351,000 metric tons of soybeans for delivery to unknown destinations. Of the total, 65,000 metric tons is for delivery during the 2019/2020 marketing year and 286,000 metric tons is for delivery during the 2020/2021 marketing year.

The marketing year for soybeans began Sept. 1.

Separately, the USDA’s Weekly Export Sales Report Thursday shows strong demand figures.

  • Corn = 1.63 million metric tons vs. the trade’s expectations of between 600,000 and 1.3mmt. 
  • Soybeans = 1.08 million metric tons. vs. trade’s expectations of 850,000 to 1.0mmt. 
  • Wheat = 764,400 mt. 
  • Soybean meal = 205,000 mt.

Al Kluis, Kluis Advisors, says that investors will continue to need fresh, bullish news for the market to gain any higher traction. 

“The grain bulls need a steady stream of export sales announcements if they are going to regain control of the charts. A return of heat and dryness on the weather forecasts would help aid the bulls’ chances of mustering another rally,” Kluis told customers in a daily note. 

Kluis added, “Some good news for the bull camp this week: China has stepped in and bought U.S. corn and soybeans. Although the soybean purchases have been expected, the corn purchases are a pleasant surprise. However, traders are hesitant to get bullish on this news. The amount of corn China would need to import to have a significant impact on supply is considerable. However, the fact we are seeing sales announcements is a giant step in the right direction.”

--------------------

DES MOINES, Iowa -- At the close of CME Group trading Wednesday, soybean and wheat futures settled higher, with corn nearly flat.

September corn futures finished ¼¢ higher at $3.26¼. Dec. corn futures ended ¼¢ higher at $3.34.

Aug. soybean futures finished 8¼¢ higher at $8.86¼. November soybean futures are 5¼¢ higher at $8.82¾.

Sep. wheat futures settled 24¢ higher at $5.50¾. 

Aug. soymeal futures ended $0.60 per short ton higher at $285.80. Aug. soy oil futures are 0.34¢ higher at 28.80¢ per pound.

In the outside markets, the NYMEX crude oil market is $0.79 per barrel higher at $41.08. The U.S. dollar is lower, and the Dow Jones Industrials are 180 points higher.

----------------------------------

DES MOINES, Iowa -- At midsession Wednesday, wheat is showing strong gains while corn futures have strengthened only slightly after China’s big corn purchases.

During midmorning trading, the September corn futures are ¼¢ higher at $3.29¾. Dec. corn futures are unchanged at $3.33¾.

 Aug. soybean futures are 6¢ higher at $8.84. November soybean futures are 3¼¢ higher at $8.80¾.

Sep. wheat futures are 17¾¢ higher at $5.44½. 

Aug. soymeal futures are $0.30 per short ton higher at $285.50. Aug. soy oil futures are $0.14 cent higher at 28.60¢ per pound.

In the outside markets, the NYMEX crude oil market is $0.38 per barrel higher at $40.67. The U.S. dollar is lower, and the Dow Jones Industrials are 116 points higher.

The consensus among traders seems to be that good weather for corn offsets benefits from China’s large buys of U.S. corn.

“Markets are very quiet today despite yet another Chinese purchase of both corn and soybeans,” says  Britt O’Connell of the Commodity Risk Management Group.

“With weather remaining fairly benign across most of the Corn Belt and the projection of very burdensome ending stocks it will be difficult to get the corn market excited about moving towards higher prices,” she says.  “As we get on the backside of corn pollination and move towards harvest it is very normal for the market to slide.”

“Rain and near perfect weather are the driving factors today in corn,” says Sal Gilbertie, founder of Teucrium Trading. “The corn crop is in good shape with no real threats on the horizon. That said, small areas of the Corn Belt are too dry, which, along with recent historically high Chinese corn purchase commitments, does maintain some yield uncertainty as a supporting factor in the corn markets.”

-----------------------------------

DES MOINES, Iowa -- On Wednesday, grain futures are mixed, with corn continuing downward and soybeans up slightly.

In early trading, the September corn futures are 1¼¢ lower at $3.24¾. Dec. corn futures 1½¢ lower at $3.32¼.

Aug. soybean futures are 2¢ higher at $8.80. November soybean futures are 1½¢ higher at $8.79.

Sep. wheat futures are 2¢ higher at $5.28¾. 

Aug. soymeal futures are $0.20 per short ton lower at $285.00.  Aug. soy oil futures are $0.21¢ higher at 28.67¢ per pound.

In the outside markets, the NYMEX crude oil market is $0.07 per barrel lower at $40.36. The U.S. dollar is lower, and the Dow Jones Industrials are 330 points higher.

Al Kluis of Kluis Commodity Advisors has this to say about corn futures:

“The corn market will have good support at $3.25 to $3.22. The corn market is in the ideal time frame for a short-term cycle low. I am watching for the first higher daily close to signal that low.” 

Also today, China is continuing its welcome shopping spree.

Private exporters reported to the U.S. Department of Agriculture the following activity:

  • Export sales of 389,000 metric tons of soybeans for delivery to China during the 2020/2021 marketing year; and 
  • Export sales of 132,000 metric tons of corn for delivery to China during the 2020/2021 marketing year.

The marketing year for corn and soybeans began Sept. 1.

--------------------------------------------

DES MOINES, Iowa -- At the close of CME Group trading Tuesday, soybean and wheat futures settled higher, with corn ending lower.

September corn futures finished 2¾¢ lower at $3.26. Dec. corn futures ended 2¾¢ lower at $3.33¾.

Aug. soybean futures finished 4¢ higher at $8.78. November soybean futures are 2¼¢ higher at $8.77½.

Sep. wheat futures settled 2¢ higher at $5.26¾. 

Aug. soymeal futures ended $0.60 per short ton higher at $285.20. Aug. soy oil futures are 0.38¢ higher at 28.46¢ per pound.

In the outside markets, the NYMEX crude oil market is $0.05 per barrel lower at $40.15. The U.S. dollar is lower, and the Dow Jones Industrials are 427 points higher.

Not long before the close, Jack Scoville of PRICE Futures Group, sums up factors driving today’s trading:

“We are up today on the lower-than-expected crop ratings released last night from USDA,” he says. “The Chinese purchases seem to have had little effect on the price action for corn and soybeans. A lot of people are looking for corn and bean prices to fill the gap left yesterday then move lower again.”

“Most crops seem OK but need a rain, especially in southwest Iowa into parts of Illinois and on east into Ohio,” he adds. “We will see if the rains come, but they are more and more in the forecast along with diminished heat. So crops might be able to get by with what they got, but I tend to think trend-line yields will be hard to attain. Most likely we’re looking at below-trend yields in both corn and beans at the moment.”

---------------------------------------

DES MOINES, Iowa -- At midsession Tuesday, soybean gains are strengthening while corn futures are only slightly higher.

During midmorning trading, the September corn futures are 1¢ higher at $3.29¾. Dec. corn futures are 1¢ higher at $3.37½.

Aug. soybean futures are 7½¢ higher at $8.81½. November soybean futures are 6¢ higher at $8.81¼.

Sep. wheat futures are 7½¢ higher at $5.32¼. 

Aug. soymeal futures are $1.90 per short ton higher at $286.50. Aug. soy oil futures are $0.48 cent higher at 28.56¢ per pound.

In the outside markets, the NYMEX crude oil market is $0.39 per barrel higher at $40.49. The U.S. dollar is lower, and the Dow Jones Industrials are 305 points higher.

The weather market in grain futures could be weakening.

“Precipitation without a doubt improved as moisture accumulated over the last week or so,” says Matt Tranel of the Commodity Risk Management Group.

“Weather forecasts currently show more rain than previously thought, which has removed the weather premium added when conditions were hot and dry in late June and early July,” Tranel says. “Typically, if weather doesn’t present a major issue by mid-July, the market struggles to regain momentum to the higher end.”

“Look at this morning’s sale to China, a record-breaking sale, and corn is trading unchanged for the day,” he said earlier in the session.  

-------------------------------------------

DES MOINES, Iowa -- On Tuesday, soybean futures are up modestly after Monday’s decline while corn is nearly unchanged.

In early trading, the September corn futures are unchanged at $3.28¾. Dec. corn futures are ¼¢ lower at $3.36¼.

 Aug. soybean futures are 2½¢ higher at $8.76½. November soybean futures are 1¢ higher at $8.76¼.

Sep. wheat futures are 5¼¢ higher at $5.30. 

Aug. soymeal futures are $0.20 per short ton higher at $284.80. Aug. soy oil futures are 0.12¢ higher at 28.20¢ per pound.

In the outside markets, the NYMEX crude oil market is $0.69 per barrel lower at $39.41. The U.S. dollar is lower, and the Dow Jones Industrials are 54 points lower.

Al Kluis of Kluis Commodity Advisors is watching July futures, which expire today.

“Both July corn and July soybean futures are trading at a premium to the next contract months,” Kluis says. “This type of inverted structure is usually a positive signal for prices.”

He also expects another rating drop in next week’s USDA Crop Progress report.

In yesterday’s report, “a large number of states are reporting a decline in the topsoil ratings,” he says.

Also on Tuesday,

Also on Tuesday, private exporters reported to the U.S. Department of Agriculture the following activity:

• Export sales of export sales of 1,762,000 metric tons of corn for delivery to China during the 2020/2021 marketing year.

• Export sales of 129,000 metric tons of soybeans for delivery to China during the 2020/2021 marketing year.

The marketing year for corn and soybeans began Sept. 1.

-----------------------------------------

On Monday, the CME Group’s farm markets sink, as crop-weather is anticipated to turn favorable.

At the close, the Sept. corn futures finished 8¼¢ lower at $3.28¾. Dec. corn futures finished 8¼¢ lower at $3.36¼.
 
Aug. soybean futures closed 13¼¢ lower at $8.74. November soybean futures finished 15½¢ lower at $8.75¾.

Sep. wheat futures closed 9¼¢ lower at $5.24¾. 

Aug. soymeal futures settled $7.90 per short ton lower at $284.60. Aug. soy oil futures closed 0.14¢ lower at 28.08¢ per pound.

In the outside markets, the NYMEX crude oil market is $0.32 per barrel lower at $40.23. The U.S. dollar is lower, and the Dow Jones Industrials are 369 points higher.

Jack Scoville, PRICE Futures Group, says that the markets are digesting weather news. 

“Still a weather market, but now the weather looks better. Cooler here and some rains seen over the weekend. Plus, the U.S. government said it will not start “phase 2” negotiations with China anytime soon, due to increased tensions in other areas. This news is not good for soybeans. So, the spec is selling this,” Scoville says.

Al Kluis, Kluis Advisors, says that investors are squarely focused on crop progress. 

“The USDA Crop Progress Report today will show corn conditions moving 2% to 3% lower and soybeans moving slightly lower. One key state to watch this week for crop ratings: Illinois. If the USDA crop ratings move below the five-year average in July, then getting an above-trendline yield will be less likely,” Kluis told customers in a daily note. 

David Tolleris, WXRisk.com meteorologist, says cool weather is on its way for the Corn Belt.
“This weekend, the main feature was widespread rain across the northern Corn Belt with seasonal temps. The weekend weather was close to the late forecasts on Friday. Now, the GFS model shows a major cold front coming down from Canada bringing cool temps and rain for most of the Corn Belt north of Interstate-70 later this week,” Tolleris stated in a daily note to customers Monday.

Tolleris added, “The hot temps are limited now to five days. The GFS has taken the extreme heat out of the Corn Belt and pushed the heat south and west in the six- to 10-day forecast. Both models take temperatures lower in the 11- to 15-day forecasts.”

Read more about

Tip of the Day

Hang-and-slide post driver makes hookups easier

post-driver storage A post driver is an awkward piece of equipment to store, and I always had a hard time finding a place to put mine. So I ran a 12-foot-long... read more

Talk in Marketing