Video: Syrian Strikes Ding The Farm Markets Friday

A slowed harvest in South America limits losses.

DES MOINES, Iowa -- On Friday, the CME Group’s farm futures closed mixed, after two-sided trading.

At the close, the May corn futures settled 1 1/4¢ lower at $3.59 1/2, while December futures finished 1 1/2¢ lower at $3.84.

May soybean futures settled 1/2¢ higher at $9.42. November soybean futures closed 1 1/4¢ lower at $9.49 1/2.

May wheat futures ended 3/4¢ higher at $4.24.

May soy meal futures closed $1.30 per short ton lower at $307.40. May soy oil futures finished $0.25 higher at 31.62¢ per pound. 

In the outside markets, the Brent crude oil market is $0.49 per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 40 points higher.

Cory Bratland, Kluis Commodities, says the geopolitical news is affecting the grain market's attitude today.

"Strong weekly export sales could not muster a rally and the market faded after finding no bullish news out there. Soybeans are a bit lower this morning, after the attack on Syria put some uncertainty back in the market. When there are big unknown factors, the market has a tendency to drift lower," Bratland stated in a daily note to customers.

Scott Shellady, TJM Investments Vice-President, agrees that the macromarkets are moving today's grains.

--------

Thursday’s Grain Market Review

On Thursday, the CME Group’s farm markets closed weaker, as they traded all session long.

At the close, the May corn futures settled 4¢ lower at $3.60¾, while December futures finished 3¼¢ lower at $3.86.

May soybean futures closed 2¾¢ lower at $9.41½. November soybean futures closed 3¼¢ lower at $9.50¾.

May wheat futures finished 6½¢ lower at $4.23¼.

May soy meal futures ended $1.10 per short ton lower at $308.70. May soy oil futures settled 0.46¢ lower at 31.37¢ per pound. 

In the outside markets, the Brent crude oil market is 57¢ per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 14 points higher.

Deanna Hawthorne-Lahre, StatFutures cofounder and trader, says that rain has dampened drought narratives, pressuring prices.

“Although a few people complain about the inability to plant, we are weeks away from a real issue,” Hawthorne-Lahre says.

“Informa, the private analyst firm, dropped the big one on beans, with a crop estimate coming in at 111.0 million metric tons in Brazil, and India wheat coming in at 100.0 mmt.”

Huge open interest is clogging the physics in the markets, Hawthorne-Lahre says. “But, barring rain in a biblical sense, this market has flatlined. Therefore, I’m still seeing trading ranges for the foreseeable future,” she says.

On Thursday, the USDA Weekly Export Sales Report indicates corn and wheat sales at the high end of expectations and soybean sales within the street’s expectations.

  • Wheat: 655,400 metric tons vs. the trade’s expectations between 300,000 and 700,000 metric tons
  • Corn: 16 mmt vs. the trade’s expectations between 800,000 and 1,250,000 metric tons
  • Soybeans: 877,000 vs. the trade’s expectations between 400,000 and 1,000,000 metric tons
  • Soybean meal: 231,000 mt vs. the trade’s expectations between 100,000 and 300,000 metric tons

-----------

Wednesday’s Grain Market Review

An oversold CME Group soybean market helped support a higher finish Wednesday.

At the close, the May corn futures settled 1¾¢ higher at $3.64¾, while December futures finished 1½¢ higher at $3.72.

May soybean futures closed 6½¢ higher at $9.44¼. November soybean futures finished 5¢ higher at $9.54.

May wheat futures are 2¾¢ higher at $4.29¾.

May soy meal futures closed $1.70 per short ton higher at $309.80. May soy oil futures settled 0.40¢ higher at 31.83¢ per pound.

In the outside markets, the Brent crude oil market is 10¢ per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 104 points higher.

Pete Meyer, PIRA Energy’s senior grain analyst, says that the soybean market is trying to create a base after last week’s acreage number.

“The problem, at the moment, is that we’re less than a week away from the April WASDE, which should contain higher U.S. inventories given the quarterly stocks number. The other issue is the size of the Brazilian bean crop in this month’s WASDE with most private estimates well above the USDA’s March target.

Meyer adds, “Excess moisture in Argentina has been supportive of beans this week, but it feels to be mainly short covering at this point.”

----

Tuesday’s Grain Market Review

On Tuesday, the CME Group’s farm markets closed lower, after losing momentum of a two-day bounce.

At the close, the May corn futures finished 4¾¢ lower at $3.65; December futures closed 4¼¢ lower at $3.87.

May soybean futures ended ½¢ lower at $9.37¾. November soybean futures closed 1¼¢ lower at $9.49.

May wheat futures finished ¾¢ lower at $4.27.

May soy meal futures finished 50¢ per short ton higher at $308.10. May soy oil futures closed 0.01¢ higher at 31.43¢ per pound. 

In the outside markets, the Brent crude oil market is 76¢ per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 28 points higher.

Jason Roose, U.S. Commodities analyst, says that the grain markets are in defense mode today.

“After a nice two-day bounce on corn and wheat with less acres, the stronger dollar, poor exports on beans, and the reality of large corn stocks have the grains trading lower with the upside limited,” Roose says.

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

Monday’s Grain Markets Review

On Monday, the CME Group’s farm futures closed mixed.

At the close, the May corn futures settled 3½¢ higher at $3.67¾; December futures finished 3¾¢ higher at $3.92.

May soybean futures closed 7¾¢ lower at $9.38¼. November soybean futures ended 3¾¢ lower at $9.50¼.

May wheat futures closed 1¼¢ higher at $4.27¾.

May soy meal futures settled at 80¢ per short ton lower at $307.60. May soy oil futures finished 0.35¢ lower at 31.43¢ per pound. 

In the outside markets, the Brent crude oil market is 18¢ per barrel lower, the U.S. dollar is lower, and the Dow Jones Industrials are 82 points lower.

Jack Scoville, The PRICE Futures Group’s senior market analyst, says good buying is surfacing in the grains and selling in soybeans. 

“Soybeans are moving lower in reaction less to the reports and more to the threat of increased selling from Argentine and Brazilian farmers, as the harvest starts to move past the point of no return,” Scoville says. 

“I have not seen much actual selling from Brazil today, but I am sure it is out there. Corn is looking at Midwest weather and the potential for harvest delays in Argentina. Wheat is watching the ruble and the Black Sea. Specs are buying, and I suspect it is mostly short covering in the wheat market,” he says.

Read more about

Tip of the Day

Agronomy Tip: Prioritize the Portfolio

A hand holding corn seed. Prioritize genetic and trait diversity.

Talk in Marketing