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Corn and soybeans close mostly higher

USDA reports more soybean export sales.

DES MOINES, Iowa --At the close of CME Group trading Friday, corn and soybean futures ended a strong week with modest gains, while wheat was sharply lower.

July corn futures finished 2¼¢ higher at $3.31¼; December corn futures ended 2½¢ higher at $3.45¼.
 
July soybean futures finished unchanged at $8.67¾; November soybean futures are 2¾¢ higher at $8.79½.

July wheat futures settled 8½¢ lower at $5.15¼. 

July soy meal futures ended $0.70 per short ton lower at $289.10. July soy oil futures are 0.32¢ higher at 28.14¢ per pound.

In the outside markets, the NYMEX crude oil market is $2.06 per barrel higher at $39.47 per barrel, the U.S. dollar is higher, and the Dow Jones Industrials are 862 points higher.

Earlier today, the USDA reported these private export sales to unknown destinations:

• Export sales of 258,000 metric tons of soybeans for delivery to unknown destinations. Of the total, 60,000 metric tons is for delivery during the 2019/2020 marketing year, and 198,000 metric tons is for delivery during the 2020/2021 marketing year.

• Export sales of 330,000 metric tons of soybeans received in the reporting period for delivery to unknown destinations. Of the total, 196,000 metric tons is for delivery during the 2019/2020 marketing year, and 134,000 metric tons is for delivery during the 2020/2021 marketing year.

The marketing year for soybeans began Sept. 1.

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DES MOINES, Iowa -- At midsession Friday, corn and soybean futures remain slightly higher after beans sold off from a strong open. Wheat futures are down.

During late morning trading July corn futures are 2¼¢ higher at $3.31¼; December corn futures are 2¢ higher at $3.44¾.
 
July soybean futures are 1¢ higher at $8.68¾; November soybean futures are 3½¢ higher at $8.80¼.

July wheat futures are 8¼¢ lower at $5.15½.    

July soy meal futures are $0.60 per short ton lower at $289.20. July soy oil futures are 0.44¢ higher at 28.26¢ per pound.

In the outside markets, the NYMEX crude oil market is $1.70 per barrel higher at $39.11 per barrel, the U.S. dollar is higher, and the Dow Jones Industrials are 930 points higher.

“Things were higher overnight but not so much this morning as some selling, probably from scared spec longs, has entered the pit,” says Jack Scoville, senior analyst for the PRICE Futures Group. “Soybeans have demand but people are afraid the Chinese will cancel.”

Don Roose of U.S. Commodities in West Des Moines, Iowa, agrees that Chinese buying has given soybeans a good week. On Friday, soybean futures that saw a strong opening disappear, then rebound by 3¢ to 4¢ a bushel later in the morning.

A weaker dollar this week (but stronger today) also helped the soybean market. U.S. prices are currently lower than Brazilian prices, he said, and a strengthening basis in Brazil suggests supplies there are running low.

U.S. corn prices remain higher than corn from Argentina, Roose says, but corn is helped by strengthening prices for ethanol and petroleum.

“As the economy unthaws, the market is opening up, too,” Roose says.

Wheat futures are seeing harvest pressure from Europe.

“Weather is improving in the Black Sea area,” he says. “We’re marching toward harvest. Harvest in Ukraine is about a week away.”

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DES MOINES, Iowa -- On Friday, the CME Group’s soybean futures rally continues as the stock market reacts favorably to an unexpected Labor Department report that the U.S. economy added 2.5 million jobs last month. Corn futures are up slightly.

In early trading, the July corn futures are 1½¢ higher at $3.30½. Dec. corn futures are 1¢ higher at $3.43¾.
 
July soybean futures are 5¢ higher at $8.72¾. November soybean futures are 5¢ higher at $8.81¾.

July wheat futures are ¾¢ lower at $5.23. 

July soymeal futures are $0.10 per short ton higher at $289.90. July soy oil futures are 0.32¢ higher at 28.14¢ per pound.

In the outside markets, the NYMEX crude oil market is $1.54 per barrel higher at $38.95 per barrel, the U.S. dollar is higher, and the Dow Jones Industrials are 694 points lower.

Bob Linneman of Kluis Commodity Advisors sees several bullish factors for corn and soybeans.

The first week of June has provided a spark to the grain complex,” Linneman says. Thursday felt like momentum traders were moving into the long side of soybeans and wheat. Corn is still burdened with the large short position held by the funds. However, we have seen how quickly the funds can unwind large positions and how it impacts prices. Are we in the midst of a short-term seasonal rally? The third week of June has a long track record of being a standout on the charts.”

“The basis improvement in both corn and soybeans is encouraging for the bull camp. However, the corn bulls need a headline that will push the funds to cover their very sizable short position,” he adds. “Soybeans are on track to close above the prior six-week highs, while July corn needs to settle above $3.31 to hit that same milestone.” 

Thursday’s Grain Market Review

INDIANOLA, Iowa -- On Thursday, the CME Group’s farm markets move higher, off of strong demand.

At the close, the July corn futures settled 5¢ higher at $3.29. Dec. corn futures closed 4½¢ higher at $3.42¼.
 
July soybean futures closed 10¼¢ higher at $8.67½. November soybean futures ended 10½¢ higher at $8.76¼.

July wheat futures closed 11¾¢ higher at $5.23¾. 

July soymeal futures finished $3.50 per short ton higher at $289.80. July soy oil futures settled 0.04¢ lower at 27.82¢ per pound.

In the outside markets, the NYMEX crude oil market is $0.07 per barrel lower at $36.74 per barrel. The U.S. dollar is lower, and the Dow Jones Industrials are 89 points lower.

On Thursday, private exporters reported to the USDA export sales of 120,000 metric tons of soybeans for delivery to unknown destinations. Of the total, 60,000 metric tons is for delivery during the 2019/2020 marketing year, and 60,000 metric tons is for delivery during the 2020/2021 marketing year.

The marketing year for soybeans began September 1.

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

  • Corn: 665,000 metric tons (mt) vs. the trade’s expectations of between 450,000 and 1.2 mmt
  • Soybeans: 1.102 mmt. vs. trade’s expectations of 600,000 to 1.5mmt 
  • Wheat: 616,800 mt
  • Soybean meal: 583,900 mt

Al Kluis, Kluis Advisors, says U.S. soybeans remain competitive on the world market.  

“Traders see that the decline in the U.S. dollar and the increase in the Brazilian real has made U.S.-sourced soybeans a cheaper option on the global export stage. On Wednesday, corn settled nearly unchanged as the charts remain neutral, and it is too early for any real damaging weather in the U.S.,” Kluis told customers in a daily note. 

Kluis added, “A few of the soybean spreads just made new four-month lows on Monday. Since then, we have posted back-to-back higher highs and higher lows on the chart. A strong close on the weekly chart could be the start of a bigger story in soybeans.”

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Wednesday’s Grain Market Review

On Wednesday, the CME Group’s farm markets were led by the soybean and wheat markets.

At the close, July corn futures finished ¼¢ lower at $3.24; December corn futures ended ¼¢ higher at $3.38¼.
 
July soybean futures closed 7¢ higher at $8.57½; November soybean futures are 5¾¢ higher at $8.66¼.

July wheat futures closed 4¢ higher at $5.12. 

July soy meal futures settled $2.60 per short ton higher at $286.30. July soy oil futures closed 0.08¢ lower at 27.86¢ per pound.

In the outside markets, the NYMEX crude oil market is 59¢ per barrel higher at $37.40 per barrel. The U.S. dollar is lower, and the Dow Jones Industrials are 491 points higher.

On Wednesday, private exporters reported to the USDA export sales of 186,000 metric tons of soybeans for delivery to unknown destinations. Of the total, 66,000 metric tons is for delivery during the 2019/2020 marketing year and 120,000 metric tons is for delivery during the 2020/2021 marketing year.
 
The marketing year for soybeans began September 1.

Al Kluis, Kluis Advisors, says investors are watching outside money and upcoming USDA yield data.  

“Many analysts will be releasing estimates for the upcoming USDA WASDE Report in coming days. The prevailing story right now is the fast pace of planting and the excellent crop ratings to start the season,” Kluis told customers in a daily note. 

Kluis added, “The continued decline in the U.S. dollar should help the export market. The dollar is now trading at the same levels seen in mid-March as the chart continues to favor the bears. Crude oil is now trading in the gap that was created on Monday, March 9. The July crude contract needs to trade up to $41.88 to fill the gap. Will the energy report this morning give the bulls what they need to keep the rally going?”

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Tuesday’s Grain Market Review

On Tuesday, the CME Group’s farm markets rely on strength from the soybean complex.

At the close, July corn futures finished 1¢ higher at $3.24; December corn futures ended 2½¢ higher at $3.38.
 
July soybean futures closed 10¢ higher at $8.50; November soybean futures ended 8¼¢ higher at $8.60¼.

July wheat futures closed 7¼¢ lower at $5.08. 

July soy meal futures settled 60¢ per short ton higher at $283.70. July soy oil futures finished 0.34¢ higher at 27.94¢ per pound.

In the outside markets, the NYMEX crude oil market is $1.32 per barrel higher at $36.76 per barrel, a multi month high as OPEC is expected to extend production cuts this week, combined with increased demand from China. The U.S. dollar is lower, and the Dow Jones Industrials are 117 points higher.

Jack Scoville, PRICE Futures Group, says today’s trade saw good volume, but not much from farmers. 

“The buying was coming from speculators. Soybeans are up on confirmation that China bought yesterday, after it supposedly told state owned enterprises not to buy. It needs the beans and have to come to the U.S. to get them,” Scoville says.

Scoville added, “Corn is up on chart action, after holding support yesterday. Wheat is down on prospects for better EU weather and weaker prices paid for Ukrainian wheat by Egypt at its tender this morning.”

On Tuesday, private exporters reported to the USDA export sales of 132,000 metric tons of soybeans for delivery to China during the 2020/2021 marketing year. 

The marketing year for soybeans began September 1.

The USDA reported on Monday that corn conditions were up 4% (at 74%) good to excellent, soybean conditions came out in the first report at 70% good/excellent, and spring wheat was at 80% good/excellent. 

Al Kluis, Kluis Advisors, says investors are watching outside money and upcoming USDA yield data.  

“The USDA may increase the projected corn yield in the Crop Production Report next week because of the high corn crop ratings,” Kluis told customers in a daily note. 

Kluis added, “Will the funds change their position in corn? Funds are now short an estimated 266,000 contracts of corn, the largest short position since May 2019. That large fund position was in place right before the corn market turned higher last year.”

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Monday’s Grain Market Review

On Monday, the CME Group’s farm markets all started and ended lower, reacting to China canceling purchases of U.S. soybeans and pork products.

In retaliation to the U.S. announcing measures against Hong Kong, China’s president has ordered his state-owned businesses to halt purchases of U.S. soybeans and other ag products.

At the close, July corn futures finished 2½¢ lower at $3.23¼; December corn futures ended 3¢ lower at $3.35¾.
 
July soybean futures settled ¼¢ lower at $8.40¼; November soybean futures closed ½¢ higher at $8.52¼.

July wheat futures ended 5½¢ lower at $5.15¾. 

July soy meal futures closed 20¢ per short ton higher at $283.40. July soy oil futures ended 0.22¢ higher at 27.60¢ per pound.

In the outside markets, the NYMEX crude oil market is 14¢ per barrel higher at $34.74 per barrel, the U.S. dollar is lower, and the Dow Jones Industrials are 109 points higher.

Al Kluis, Kluis Advisors, says investors will have their eyes on the skies.    

“Trade attention now is on the extended weather forecasts – how long it is going to stay hot,” Kluis told customers in a daily note. Watch the extended weather forecasts. The warm – even hot – dry conditions in the forecast for later this week are viewed as beneficial for the U.S. corn and soybean crops. The key is that the hot, dry conditions do not stay locked in for more than three to four days.  

Kluis added, “The USDA Crop Progress Report today will show corn conditions steady to up 1% (at 70% to 71%) good to excellent. The initial soybean rating is likely to show the nation’s soybean crop rated about 65% to 68% good to excellent.”

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