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Soybeans Add 8¢ Friday

Big world ending stocks weigh on corn market.

DES MOINES, Iowa -- The farm markets have turned mixed, following a mostly lower start from yesterday’s bearish USDA Reports.

At the close, the December corn futures finished 3¾¢ lower at $3.69. March futures closed 4¢ lower at $3.81.
 
January soybean futures settled 7¾¢ higher at $8.86¾. March soybean futures closed 8¢ higher at $9.00.
 
December wheat futures ended 5¾¢ lower at $5.02. December soymeal futures settled 0.50¢ per short ton lower at $305.60. December soy oil futures closed 0.40¢ lower at 27.62¢ per pound.

In the outside markets, the NYMEX crude oil market is $0.47 lower, the U.S. dollar is higher, and the Dow Jones Industrials are 161 points lower.

Sal Gilbert, Teucrium Trading owner, says that today’s markets will need to digest yesterday’s USDA data that included Chinese data that found more corn in that Asian country. But, once digested, he doesn’t see longer term downside.

“In the end, nothing has changed. Grains are supported at current levels, and I really don’t see much downside from here, given current demand and inventories that are actually shrinking,” Gilbertie says.

Al Kluis, Kluis Advisors, says that the USDA gave investors a lot to talk about, but the focus turns to other market factors.

“However, now the focus shifts to the weather in South America and trade talks with China,” Kluis stated in a note to customers.

Kluis added, “Harvest is wrapping up, and the bin doors are going shut. Keep a close eye on basis levels, which seem to be improving.”

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Thursday’s Grain Market Review

On Thursday, the CME Group’s farm markets trade mixed, ahead of the 11 a.m. CST USDA Supply/Demand Report.

In early trading, December corn futures are 1¢ higher at $3.73; March futures are 1¢ higher at $3.84.
 
January soybean futures are ½¢ lower at $8.79; March soybean futures are ½¢ lower at $8.91.

December wheat futures are 2¾¢ higher at $5.13.

December soy meal futures are 10¢ per short ton higher at $308.10.

In the outside markets, the NYMEX crude oil market is 63¢ lower, the U.S. dollar is lower, and the Dow Jones Industrials are 1 point higher.

The USDA released its weekly Export Sales Report, Thursday. The sales were not good enough to move the markets.

  • Corn = 701,500 metric tons, up 78% from the previous week and 32% from the prior 4-week average.
  • Soybeans =  391,400 mt., down 2% from the previous week, but up 16% from the prior 4-week average.
  • Wheat = 661,200 mt., up 14% from the previous week and 47% from the prior 4-week average.
  • Soymeal = 256,000 mt.

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Wednesday’s Grain Market Review

On Wednesday, the CME Group’s farm markets extend this week’s losses.

At the close, December corn futures finished 1¢ lower at $3.72¼; March futures ended 1½¢ lower at $3.83¾.

January soybean futures closed 4¾¢ lower at $8.79½; March soybean futures finished 4¼¢ lower at $8.92¼.

December wheat futures closed 1¾¢ lower at $5.10¼.

December soy meal futures closed 3.40¢ per short ton lower at $308. December soy oil futures finished 0.30¢ higher at 28.20¢ per pound.

In the outside markets, the NYMEX crude oil market is 43¢ lower, the U.S. dollar is lower, and the Dow Jones Industrials are 471 points higher.

Al Kluis, Kluis Advisors, says tomorrow’s report could indicate market direction.

“Traders are estimating that the funds are now long nearly 50,000 contracts of corn. If Thursday’s USDA report is bullish, will they add to the long position and push through the October 15 highs?” Kluis stated in a daily note to customers.

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Tuesday’s Grain Market Review

On Tuesday, investors continue to kkep their distance from the corn and soybean markets.

At the close, December corn futures finished ¾¢ lower at $3.73; March futures closed ½¢ lower at $3.85.

January soybean futures finished 1½¢ lower at $8.84; March soybean futures ended 1¾¢ lower at $8.96.

December wheat futures settled 4¾¢ higher at $5.12.

December soy meal futures closed 80¢ per short ton higher at $311.40. December soy oil futures finished even at 27.90¢ per pound.

In the outside markets, the NYMEX crude oil market is 89¢ lower, the U.S. dollar is lower, and the Dow Jones Industrials are 89 points higher.

Al Kluis, Kluis Advisors, says the markets need some more bullish news to prevent a move lower.

“They (markets) will need to see more friendly news before the USDA report on Thursday, or we could see prices grind lower toward support,” Kluis stated to customers in a daily note.

Kluis added, “In the USDA Crop Progress Report Monday, corn harvest was reported at 76% (77% five-year average), while soybeans were reported at 83% (89% five-year average). Will the slow harvest pace have any impact on traders ahead of the USDA report this week?”

Also, investors are keeping an eye on Brazil’s soybean planting season, he says.

“Planting in Brazil is clipping along at a record pace. As of the latest report, Brazilian farmers are 19 percentage points ahead of the five-year average. This fast pace and nonthreatening weather could mean new-crop Brazilian soybeans would be ready for export in late December.”

Yesterday’s trade finished lower, while getting conflicting signals from outside markets, Kluis says.

“Yesterday, traders were faced with mixed outside markets as crude oil, RBOB gasoline, and heating oil prices made new lows for the month while the stock market posted a nice rally. Strong export news for corn helped support corn prices,” Kluis says.

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Monday’s Grain Market Review

On Monday, the CME Group’s farm markets have buying interests.

At the close, December corn futures settled 2¾¢ higher at $3.74; March futures ended 2½¢ higher at $3.85¾.

January soybean futures ended 2¢ lower at $8.85¾; March soybean futures closed 1¾¢ lower at $8.98¼.

December wheat futures closed 1½¢ lower at $5.07¼.
 
December soy meal futures settled 40¢ per short ton lower at $310.60. December soy oil futures closed 0.30¢ lower at 27.90¢ per pound.
 
In the outside markets, the NYMEX crude oil market is 28¢ lower, the U.S. dollar is lower, and the Dow Jones Industrials are 225 points higher.

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