Ag markets close sharply higher Tuesday

Japan buys a fresh batch of U.S. corn Tuesday.

On Tuesday, the CME Group’s farm markets reverse to close stronger.

At the close, the May corn futures settled 6¾¢ higher at $5.45. July corn futures finished 5¾¢ higher at $5.32¾. New-crop December corn futures finished 7¢ higher at $4.75¾. 
May soybean futures closed 21¼¢ higher at $14.12. July soybean futures ended 17¾¢ higher at $13.98½. New-crop November soybean futures settled 10½¢ higher at $12.29¼.

May wheat futures ended 16¢ higher at $6.66¾. 

May soymeal futures finished $3.40 short term higher at $421.70.

May soy oil futures settled 0.43¢ higher at 49.66¢ per pound.

In the outside markets, the NYMEX crude oil market is -0.50 lower (-0.82%) at $60.14. The U.S. dollar is lower, and the Dow Jones Industrials are 25 points lower (-0.08%) at 31,510 points.

On Tuesday, private exporters reported to the USDA export sales of 175,000 metric tons of corn for delivery to Japan during the 2021/2022 marketing year.

The marketing year for corn began Sept. 1.

Al Kluis, Kluis Advisors, says that investors will be closely watching the price spread difference between futures contracts to determine the direction of the markets.  

“After a higher start on Sunday night, the grain markets turned lower on fund-selling and concerns about Chinese demand,” Kluis stated in a daily note to customers. “The way the bull spreads worked yesterday in the corn and soybean markets suggests prices will find support by early next week. Since the early-August lows, the corn and soybean markets have bottomed in the first or second week of each month. In six of the last seven months, the low for the month has come in the first week of the month.”

Kluis added, “Watch the March-May corn spread. Even with the lower corn market yesterday, March is still trading at an 8¢ premium to the May contract. There have been no deliveries posted against the March contract. If the premium continues into contract expiration next Friday, then it is a positive signal for corn prices.”

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