Soybeans close 16¢ higher | Monday, April 19, 2021

Bullish weather underpins the markets, analyst says.

On Monday, the CME Group’s corn, soybean markets finish strong.

At the close, the May corn futures settled 6¼¢ higher at $5.92¾.

July corn futures finished 6¾¢ higher at $5.80¾. New-crop December corn futures settled 8¢ higher at $5.20¾.
 
May soybean futures closed 16½¢ higher at $14.49¾. July soybean futures closed 14¢ higher at $14.36¾. New-crop November soybean futures closed 10¢ higher at $12.84¼.

July wheat futures finished 1¼¢ lower at $6.53½. 

July soymeal futures settled $4.90 short term higher at $411.30.

July soy oil futures closed 0.37¢ lower at 53.87¢ per pound.

In the outside markets, the NYMEX crude oil market is +0.22 higher (+0.35%) at $63.35. The U.S. dollar is lower, and the Dow Jones Industrials are 165 points lower (-0.49%) at 34,034 points.

Jack Scoville, PRICE Futures Group, says that the market is reacting to weather concerns.

“We are back talking weather with freezing temps for the Midwest and Great Plains and dry weather in safrinha corn areas of Brazil. Export inspections were solid and what the market wanted. I think specs are the best buyers today. New crop leading the corn market higher on potential for freeze damage to newly planted crops and some delays now in the early planting. Old crop leading the beans higher because we only have a limited supply left and we are using them up quickly,” Scoville says.

Al Kluis, Kluis Advisors, says that the soybean market is still not swaying farmers to plant beans over corn. 

“I am watching the USDA Crop Progress report today to see if corn planting jumps and stays above the five-year average. I expect a slight improvement in winter wheat crop conditions,” Kluis stated in a note to customers.

Kluis added, “Dry conditions in Brazil will take their corn crop below 100 million metric tons. This will take the total corn crop down about 400 million bushels from last year’s crop and keep China coming back to the U.S. for more corn.”

David Tolleris, WxRisk.com, says that the Corn Belt’s planting weather and South America’s crop-weather could be favorable for the markets.

“It was a cool, dry weekend across most of the Corn Belt this weekend, with some rain and snow moving across the Corn Belt starting on Sunday. This front moves into Missouri and across Illinois and into Indiana. The two coldest days will be April 20 through April 22. The extended forecast models show cool temps and a lot of rain across the Corn Belt into early May,” Tolleris stated in Kluis Advisor’s daily note to customers. 

Tolleris added, “For South America, this weekend brought some rain into central and southern Brazil. Dry conditions will return this week and then some possible rain in the six- to 10-day forecasts. The overall pattern looks to stay dry.”

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