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Corn closes higher, soybeans lower | Friday, January 14, 2022

The funds are believed to be selling long positions, analyst says.

On Friday, the CME Group’s corn market finished higher, soybeans lower ahead of a long weekend.

On Monday, the CME Group’s commodities markets will be closed, due to the Martin Luther King Jr. holiday. The markets reopen Monday. 

At the close, the March corn futures closed 8¾¢ higher at $5.96. May futures ended 7¾¢ higher at $5.97. July corn futures settled 5¾¢ higher at $5.93. December futures settled ½¢ higher at $5.58. 
 
March soybean futures closed 7½¢ lower at $13.69. 

May soybean futures finished 7¾¢ lower at $13.79. New-crop November soybean futures finished 11½¢ lower at $12.93.

March wheat futures closed 5½¢ lower at $7.41.
 
March soymeal futures finished $3.30 per short ton lower at $405.60.


March soy oil futures are 0.02¢ higher at 58.46¢ per pound.

In the outside markets, the crude oil market is $1.61 per barrel higher at $83.73. The U.S. dollar is higher, and the Dow Jones Industrials are 316 points lower (-0.88%) at 35,796.

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Corn trades higher, soybeans lower

Just as they started the session, the CME Group’s farm markets remain mixed.

At midsession, the March corn futures are 3¾¢ higher at $5.91. May futures are 3¢ higher at $5.92. July corn futures are 2¼¢ higher at $5.90. December futures are ¾¢ higher at $5.58. 
 
March soybean futures are 4½¢ lower at $13.72. 

May soybean futures are 4¾¢ lower at $13.82. New-crop November soybean futures are 7½¢ lower at $12.97.

March wheat futures are 4½¢ lower at $7.42.
 
March soymeal futures are $1.80 per short ton lower at $407.10.


March soy oil futures are unchanged at $58.44 per pound.

In the outside markets, the crude oil market is $1.04 per barrel higher at $83.16. The U.S. dollar is higher, and the Dow Jones Industrials are 250 points lower (-0.69%) at 35,863.

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Ag markets diverge

On Friday, the CME Group’s farm markets trade mixed as investors eye fund liquidation.

In early trading, the March corn futures are 1¼¢ higher at $5.89. May futures are 1¼¢ higher at $5.90. July corn futures are ½¢ higher at $5.88. December futures are 2¢ higher at $5.59. 
 
March soybean futures are 3¢ lower at $13.74. 

May soybean futures are 3¼¢ lower at $13.84. New-crop November soybean futures are 6½¢ lower at $12.98.

March wheat futures are 7¢ lower at $7.39.
 
March soymeal futures are 1.40 per short ton higher at $410.30.


March soy oil futures are 0.38¢ lower at 58.06¢ per pound.

In the outside markets, the crude oil market is $0.58 per barrel higher at $82.70. The U.S. dollar is higher, and the Dow Jones Industrials are 342 points lower (-0.95%) at 35,771.

On Friday, private exporters reported the following activity: 

  • 100,422 metric tons of corn for delivery to Mexico during the 2021/2022 marketing year
  • 100,000 metric tons of soybean meal for delivery to Spain during the 2022/2023 marketing year

Bob Linneman, Kluis Advisors, says that outside investors may be selling long positions.

“Grain futures were hit with heavy selling on Thursday. This strong selling following a quiet USDA report on Wednesday is leading many traders to believe the funds are exiting some long positions in corn and soybeans. A primary culprit for the barrage of selling is the drenching rains that are supposed to fall Sunday through Wednesday in many of the dry regions of South America. If those rains do not materialize as the models suggest, then we could see some wild price action early next week,” Linneman stated in a note to customers. 

Linneman added, “Basis levels have slipped over the past month in many areas of the Corn Belt. If basis starts to slip faster in one area, then it could create a domino effect and push basis back to more normal levels. If basis is still strong locally, then consider whether locking that basis is the right move.”

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