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Ag markets close mixed | Wednesday, June 23, 2021

China buys large amount of U.S. soybeans.

On Wednesday, the CME Group’s farm markets finish mixed.

At the close, the July corn futures settled 4½¢ higher at $6.64. New-crop September futures finished 2¢ lower at $5.51 December corn futures closed 3¼¢ lower at $5.35¾. 
July soybean futures closed 9½¢ lower at $13.85. 

August soybean futures settled 6¢ lower at $13.46. New-crop November soybean futures ended 2¢ lower at $13.00¾.

Sept. wheat futures settled 10½¢ higher at $6.61. 

July soymeal futures closed $9.10 per short ton lower at $354.20.

July soy oil futures closed 1.75¢ higher at 60.67¢ per pound.

In the outside markets, the NYMEX crude oil market is +0.26 higher (+0.36%) at $73.11. The U.S. dollar is higher, and the Dow Jones Industrials are 8 points lower (-0.02%) at 33,938 points.

On Wednesday, private exporters reported to the U.S. Department of Agriculture export sales of 330,000 metric tons (13.0 million bushels) of soybeans for delivery to China during the 2021/2022 marketing year.

The marketing year for soybeans began Sept. 1.

Bob Linneman, Kluis Advisors, says that the weather models changing daily (and sometimes intra-daily) is a big catalyst right now.

“Traders are still waiting to hear just exactly what will happen with the biofuel waivers and how the playing field for that industry could be impacted. With one week to go until the USDA’s big planted acreage report, traders are also weighing the suggestions from private firms regarding the surveys they have conducted. The heat and dry conditions for some across the western Corn Belt has diminished yield potential to some degree already. If this spreads into Iowa, then it will be hard for the trade to ignore,” Kluis stated in a note to customers.  

Kluis added, “The forecasts for the western Corn Belt remain drier than normal. Heat appears to be leaking back into the forecast as well. Overnight, one of the closely watched models shifted rain potential for Iowa more to the eastern one-third of the state. The western part of Iowa could miss out on much-needed moisture if this new forecast is verified.”

On Wednesday, the Farm Business Network (FBN) released its estimates for the upcoming USDA June Acreage Report.

The global farmer-to-farmer network sees U.S. 2021 corn acreage number above the USDA’s March reading of 91.1 million acres (MA). 
Soybean planting, which was estimated at 87.6 MA acres in March, FBN projects now could drop to 86.5 million – potentially indicating a razor-thin carryout crop, according to the FBN press release.

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