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Soybean prices end double-digits higher | Wednesday, January 12, 2021

Brazil’s soybean number could drop further than today's USDA number.

Following a USDA report that sparked little initial reaction, the CME Group’s soybean market did gain strength to close double-digits higher.

At the close, the March corn futures finished 2¢ lower at $5.99. May futures closed 1¾¢ lower at $6.00. July corn futures ended 2¢ lower at $5.98. 
 
March soybean futures closed 12¾¢ higher at $14.08. 

May soybean futures ended 12¾¢ higher at $14.13. New-crop November soybean futures ended 12¾¢ higher at $13.12.

March wheat futures closed 13¼¢ lower at $7.57.
 
March soymeal futures closed $3.10 per short ton higher at $416.20.


March soy oil futures settled 0.50¢ higher at 59.37¢ per pound.

In the outside markets, the crude oil market is $1.71 per barrel higher at $82.93. The U.S. dollar is lower, and the Dow Jones Industrials are 17 points higher (+0.05%) at 36,269.

READ MORE: 2022 grain market outlook 

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Little corn, soybean market reaction

On Wednesday, the CME Group’s farm markets had little reaction to the USDA reports released today.

At midsession, the March corn futures are 3¼¢ lower at $5.97. May futures are 3¾¢ lower at $5.98. July corn futures are 3¾¢ lower at $5.96. 
 
March soybean futures are 2½¢ lower at $13.84. 

May soybean futures are 2¾¢ lower at $13.92. New-crop November soybean futures are 1¾¢ lower at $12.98.

March wheat futures are 13¼¢ lower at $7.57.
 
March soymeal futures are $2.00 per short ton higher at $415.10.


March soy oil futures are 0.08¢ lower at 58.79¢ per pound.

In the outside markets, the crude oil market is $1.61 per barrel higher at $82.83. The U.S. dollar is lower, and the Dow Jones Industrials are 35 points higher (+0.10%) at 36,287.

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Ag markets drop

On Wednesday, the CME Group’s farm markets fall, ahead of the USDA’s reports today.

In early trading, the March corn futures are 1¼¢ lower at $5.99. May futures are 2¢ lower at $6.00. July corn futures are 2¢ lower at $5.98. 
 
March soybean futures are 3¾¢ lower at $13.82. 

May soybean futures are 3¾¢ lower at $13.91. New-crop November soybean futures are 4¾¢ lower at $12.95.

March wheat futures are 4¾¢ lower at $7.65.

March soymeal futures are $2.70 per short ton lower at $410.40.

March soy oil futures are 0.34¢ higher at 59.21¢ per pound.

In the outside markets, the crude oil market is $0.81 per barrel higher at $82.03. The U.S. dollar is lower, and the Dow Jones Industrials are 123 points higher (+0.34%) at 36,375.

On Wednesday, private exporters reported the following activity:

  • 132,000 metric tons of soybeans for delivery to China during the 2022/2023 marketing year
  • 100,000 metric tons of corn for delivery to unknown destinations during the 2021/2022 marketing year


Bob Linneman, Kluis Advisors, says that most likely today’s USDA estimate on Brazil’s soybean output will not be low enough.

“With very hot (possibly record) high temperatures in Argentina, production estimates will move lower again next week. The odds are good that whatever number the USDA publishes today for the size of the soybean crop in Brazil and Argentina, the production numbers will drop again next month,” Kluis stated in a note to customers. 

Linneman added, “I am watching the key chart support levels at $5.96 in May corn and $13.78 in May soybeans. Can those levels hold today? A close today or any day this week below that key support level will confirm a short-term top.”

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