Ag markets diverge | Friday, March 26, 2021

Investors eye next week’s USDA data.

On Friday, the CME Group’s corn market close mixed.

At the close, the May corn futures finished 6¢ higher at $5.52½. July corn futures closed 3¾¢ higher at $5.35. New-crop December corn futures closed 1¢ higher at $4.66½. 
May soybean futures are 13¾¢ lower at $14.00. July soybean futures are 13¼¢ lower at $13.91½. New-crop November soybean futures are 7½¢ lower at $12.07.

May wheat futures are 7½¢ lower at $6.10¼. 

May soymeal futures are $0.60 short term higher at $404.10.

May soy oil futures are 0.70¢ lower at 54.28¢ per pound.

In the outside markets, the NYMEX crude oil market is +2.58 higher (+4.41%) at $61.14. The U.S. dollar is lower, and the Dow Jones Industrials are 167 points higher (+0.51%) at 32,787 points.

Bob Linneman, Kluis Advisors, says that the markets will attempt to recover from a weaker performance Thursday.   

“Although corn was a nickel off the low, the bears were able to keep a lid on any attempt by the bulls to push prices back to positive. The soybean market was led lower by a limit-down move in May soybean oil futures. Monday was a limit-up move in the May soybean oil contract. High volatility in the soybean product contracts can be tied to higher volatility of similar contracts in China and traders’ uncertainty about upcoming USDA reports. The tight supply of old-crop grain in the U.S. will continue to be one of the bulls’ biggest catalysts,” Linneman stated in a daily note to customers.

Linneman added, “Traders continue to be more optimistic to the upside in grains when we review options ahead of the report next Wednesday. Call options are consistently more expensive than puts, when comparing proximity to futures price.”

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