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Soybeans Surge 18¢ Friday, Close Above $10

Corn and wheat ended stronger too.

DES MOINES, Iowa -- On Friday, the CME Group’s farm markets rally off of risk-on mentality in the soybean complex.

At the close, the Dec. corn futures finished 6 1/2¢ higher at $3.43. March futures finished 6¢ higher at $3.55.

Jan. soybean futures settled 18 1/2¢ higher at $9.90.  March soybean futures closed 18 1/4¢ higher at $10.01.

December wheat futures finished 5 3/4¢ higher at $4.27.

Dec. soy meal futures closed $7.70 per short ton higher at $318.20. Dec. soy oil futures close 0.01¢ higher at 34.44¢ per pound. 

In the outside markets, the Brent crude oil market is $1.38 higher, the U.S. dollar is lower, and the Dow Jones Industrials are 94 points lower.

Mike North, President of Commodity Risk Management Group, says profit-taking and weather premium are driving today's rally.

"This afternoon's Commitment of Traders report will likely reveal a new record short position held by funds in the corn market.  Some of those positions are likely being lifted today as dry weather concerns in South America are beginning to add a touch of weather premium.  Traders are likely taking some profit to capture the "large" downward move that took place this week.  As we head towards the Thanksgiving holiday, more of that may continue," North says.
 
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Thursday’s Grain Market Review

On Thursday, the CME Group’s farm markets close mostly lower.

At the close, the December corn futures finished 1¾¢ lower at $3.36. March futures closed 2¢ lower at $3.49.

January soybean futures finished 4¼¢ lower at $9.72. March soybean futures settled 4¢ lower at $9.83¼.

December wheat futures ended 1½¢ higher at $4.21½.

December soy meal futures settled $0.80 per short ton lower at $310.50. December soy oil futures closed 0.32¢ lower at 34.43¢ per pound. 

In the outside markets, the Brent crude oil market is $0.22 lower, the U.S. dollar is higher, and the Dow Jones Industrials are 215 points higher.

Brian A. Rydlund, CHS Market Analyst, says that today’s markets are relatively uneventful.

“It’s almost a flip from yesterday. “Row crop futures are leaking, while wheat rallies. The weekly export sales numbers were disappointing, South America’s weather appears good, therefore bearish,” Rydlund says.

As the U.S. harvest wraps up, cash bids are improving, Rydlund says.

“Most elevators buy some corn every day. The basis bids for soybeans remain on the uptick, firming again yesterday. Corn bids are starting to firm up, as well.”

Technically speaking, the charts are a mess in corn, Rydlund says.

“We are making a new contract low in the December 2017 contract for the third day in a row at $3.36¼ per bushel. Expect lower, yet, by next week,” Rydlund says.  

The USDA released its Weekly Export Sales Report Thursday. All sales were at the low end of expectations.

  • Wheat = 519,300 metric tons vs. the trade’s expectations of between 350,000 and 800,000 tons.
  • Corn = 949,500 mt. vs. the trade’s expectations of between 800,000 and 2,200,000 metric tons.
  • Soybeans = 1.17 million mt. vs. the trade’s expectations of between 1,000,000 and 1,650,000 metric tons.
  • Soybean meal = 167,000 mt. vs. the trade’s expectations of between 125,000 and 250,000 metric tons.

 

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Wednesday’s Grain Markets Review

On Wednesday, the CME Group’s farm markets close mostly higher, on investors believing the recent sell-off was oversold.

At the close, the December corn futures finished ¾¢ higher at $3.38. March futures are ½¢ higher at $3.51.

January soybean futures settled 8½¢ higher at $9.76¼. March soybean futures closed 8½¢ higher at $9.87¼.

December wheat futures finished 8¢ lower at $4.20.

December soy meal futures closed $1per short ton higher at $311.30. December soy oil futures closed 0.74¢ higher at 34.75¢ per pound. 

In the outside markets, the Brent crude oil market is 47¢ lower, the U.S. dollar is higher, and the Dow Jones Industrials are 124 points lower.

Jason Roose, U.S. Commodities grain analyst, says the markets are liking that the U.S. harvest is nearing completion.

“Grains are finding mild support as the U.S. corn and soybean harvests reach their final stages. Plus, slow producer-selling helps the corn market, and continued strong demand from China gives support to the soybean complex,” Roose says.

 

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Tuesday’s Grain Market Review

On Tuesday, the CME Group’s farm futures finished lower. The soybean market is extending losses from yesterday’s double-digit drop.

At the close, the December corn futures finished 4¾¢ lower at $3.37½. March futures settled 4½¢ lower at $3.50.

January soybean futures ended 6¼¢ lower at $9.67; March soybean futures settled 6¼¢ lower at $9.78.

December wheat futures ended 3¾¢ higher at $4.28.

December soy meal futures finished $1 per short ton lower at $310.30. December soy oil futures closed 0.32¢ lower at 34.01¢ per pound. 

In the outside markets, the Brent crude oil market is $1.21 lower, the U.S. dollar is lower, and the Dow Jones Industrials are 44 points lower.

On Tuesday, private exporters reported to the USDA export sales of 133,096 metric tons of corn for delivery to unknown destinations during the 2017/2018 marketing year. The marketing year for corn began September 1.

Jack Scoville,The PRICE Futures Group’s senior market analyst, says outside markets are hurting the grains.

“The dollar is lower, but so is crude oil, and the latter market seems to be the thing today. It remains generally quiet here with farmers wanting higher prices before they sell, and specs not too interested in sideways markets,” Scoville says.  

He adds, “Good growing conditions in South America are negative and helping to keep selling alive. Some harvest delays here, but no one real concerned.”

 

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Monday’s Grain Market Review

On Monday, the CME Group’s farm markets react negatively to bearish USDA weekly soybean inspection report, favorable soybean planting weather in Brazil, and profit-taking.

At the close, the December corn futures finished 1¼¢ lower at $3.42¼. March futures settled 1¾¢ lower at $3.55.

January soybean futures finished 12¾¢ lower at $9.74¼; March soybean futures finished 12½¢ lower at $9.85½.

December wheat futures closed 7¼¢ lower at $4.24.

December soy meal futures finished $3.20 per short ton lower at $311.30. December soy oil futures closed 0.48¢ lower at 34.33¢ per pound. 

In the outside markets, the Brent crude oil market is 4¢ higher, the U.S. dollar is lower, and the Dow Jones Industrials are 29 points higher.

 

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