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Corn, Soybean Markets Bounce Back Friday

Investors are selling the ag markets.

DES MOINES, Iowa -- On Friday, the CME Group’s futures welcome buyers into the market for the first time this week.

At the close, the December corn futures finished 6¾¢ higher at $3.67¾. March futures finished 6½¢ higher at $3.80.

November soybean futures closed 3¼¢ higher at $8.45. January soybean futures ended 3¼¢ higher at $8.57¾.

December wheat futures closed 18¢ higher at $5.05¼.

December soymeal futures closed 3.00¢ per short ton higher at $307.30. December soy oil futures closed $0.23 lower at 28.16¢ per pound.

In the outside markets, the NYMEX crude oil market is $0.19 lower, the U.S. dollar is lower, and the Dow Jones Industrials are 197 points lower.

On Friday, the USDA announced a fresh sale of soybeans.

Private exporters reported to the USDA export sales of 260,000 metric tons of soybeans for delivery to unknown destinations. Of the total 200,000 metric tons is for delivery during the 2018/2019 marketing year and 60,000 metric tons is for delivery during the 2019/2020 marketing year.
 
The marketing year for soybeans began September 1.

Jack Scoville, The PRICE Futures Group’s senior market analyst, says that some of these markets are higher, after being oversold.

“Wheat prices are supported by the Egypt’s tender, where we compete as the cheapest FOB but not CIF.  That woke up an oversold wheat market. Not sure we can do much more in the wheat without doing the business; we are at strong resistance now,” Scoville says.  

He added, “Corn is just oversold and facing harvest delays although the Gulf basis did perk up a few cents. Farmers working beans and report of damage are out there. Our bean crop is getting a little smaller, and we are going to lose a bushel or two.   The new-bean sale also bullish and helping.”

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Thursday’s Grain Market Review

Thursday’s farm markets are extending losses from yesterday.

At the close, December corn futures finished 7¼¢ lower at $3.61; March futures ended 7¢ lower at $3.73½.

November soybean futures closed 8½¢ lower at $8.41¾; January soybean futures closed 9¢ lower at $8.54½.

December wheat futures closed 12¼¢ lower at $4.87¼.

December soy meal futures finished 1.80¢ per short ton lower at $304.30. December soy oil futures closed 0.22¢ lower at 28.39¢ per pound.

In the outside markets, the NYMEX crude oil market is 51¢ higher, the U.S. dollar is higher, and the Dow Jones Industrials are 496 points higher.

Al Kluis, Kluis Advisors, says the ag markets are at the mercy of the outside markets.

“Hedge pressure is escalating as we get to the tail end of harvest. The shake-up in the equity markets is also causing some negative influence in our commodity markets as investors have a tendency to pull money out and go to the sideline,” Kluis stated to customers in a daily note.

On Thursday, the USDA released its Weekly Export Sales Report. Corn and soybean sales fell below expectations.

Here are the totals:

  • Wheat: 442,600 metric tons vs. the trade’s expectations of between 250,000 and 500,000 mt
  • Corn: 349,500 mt vs. the trade’s expectations of between 400,000 and 750,000 mt
  • Soybeans: 212,700 mt vs. the trade’s expectations of between 300,000 and 700,000 mt

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Wednesday’s Grain Market Review

On Wednesday, the CME Group’s farm markets close at daily lows.

At the close, December corn futures finished 2¢ lower at $3.68¼; March futures ended 2¢ lower at $3.80½.

November soybean futures closed 7¼¢ lower at $8.50¼; January soybean futures finished 7½¢ lower at $8.63½.

December wheat futures closed 9½¢ lower at $4.99.

December soy meal futures settled 4.60¢ per short ton lower at $306.10. December soy oil futures finished 0.15¢ lower at 28.61¢ per pound.

In the outside markets, the NYMEX crude oil market is 43¢ higher, the U.S. dollar is higher, and the Dow Jones Industrials are 215 points lower.

Al Kluis, Kluis Advisors, says the outside markets are catching the attention of investors involved in the ag markets.

“At first glance, this might appear to be boring. However, it feels like a win for the bulls. The stock market experienced another wild downturn on Tuesday, yet the grains managed to close almost steady,” Kluis stated in a daily note to customers.

Kluis added, “Even though we have not seen an overwhelming correlation between grains and the stock market recently, it is always concerning for grain traders when the stock market sees a washout move lower.”

Meanwhile, investors have one eye on South America’s soybean planting season.

“South American weather will start moving to center stage as the U.S. harvest has hit the halfway point. Any stories regarding problem areas will be magnified,” Kluis stated to customers on Wednesday.

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Tuesday’s Grain Market Review

On Tuesday, the CME Group’s farm markets settle diverged.

At the close, December corn futures finished ¾¢ higher at $3.70¼; March futures closed ¾¢ higher at $3.82½.

November soybean futures finished 1¢ lower at $8.57½; January soybean futures closed 1½¢ lower at $8.71.

December wheat futures settled 1¢ higher at $5.09.

December soymeal futures ended 2.10¢ per short ton lower at $310.70. December soy oil futures closed 0.39¢ lower at 28.76¢ per pound.

In the outside markets, the NYMEX crude oil market is $3.19 lower, the U.S. dollar is lower, and the Dow Jones Industrials are 103 points lower.

Jason Roose, U.S. Commodities analyst, says investors are eyeing the U.S. harvest pace.

“As harvest progresses slowly, grains are having a relief rally with slow producer-selling. Also, solid exports, reported yesterday, give indications that corn and soybeans are at short-term value.”

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Monday’s Grain Market Review

On Monday, the CME Group’s farm futures prices rise, as investors want to buy.

At midsession, December corn futures are 2¢ higher at $3.69; March futures are 1½¢ higher at $3.81.  

November soybean futures are 2¼¢ higher at $8.59; January soybean futures are 2¢ higher at $8.72.  

December wheat futures are 7¢ lower at $5.07¾.  

December soy meal futures are 0.50¢ per short ton higher at $312.60. December soy oil futures are 0.06¢ higher at 29.20¢ per pound.  

In the outside markets, the NYMEX crude oil market is 35¢ lower, the U.S. dollar is higher, and the Dow Jones Industrials are 173 points lower.

Al Kluis, Kluis Advisors, says basis prices, harvest progress, and South America’s planting season are attracting the attention of investors.

“The USDA Crop Progress Report today will show corn harvest at about 45% complete and soybeans at about 48% complete. Some farmers in the northern and western Corn Belt are done harvesting soybeans, and others hope to start with soybeans this week. This week a lot more will get done,” Kluis stated in a daily note to customers.

Kluis added, “Corn basis levels on the Illinois River, and corn spreads will help signal that corn prices have put in a seasonal low.”

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