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323397

Soybeans, corn close up double-digits | Friday, January 28, 2022

China buys large amounts of U.S. soybeans Friday.

The Friday rally on the CME Group's exchange included corn, soybean and wheat contracts.

At the close, the March corn futures finished 10 3/4¢ higher at $6.36. May futures closed 10 1/4¢ higher at $6.33. December futures ended 2 3/4¢ higher at $5.69 1/2. 
 
March soybean futures settled 21 3/4¢ higher at $14.70. 

May soybean futures finished 21 1/4¢ higher at $14.75. New crop November soybean futures closed 13 1/2¢ higher at $13.51.

March wheat futures closed 9 1/2¢ higher at $7.86.
 
March soymeal futures finished 6.50 per short ton higher at $411.20.


March soy oil futures settled 0.93 higher at 65.27 per pound.

In the outside markets, the crude oil market is $0.13 per barrel higher at $86.74 the U.S. Dollar is lower, and the Dow Jones Industrials are 186 points higher (+0.55%) at 34,347.
 

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Soybeans rally

On Friday, the CME Group's corn and soybean markets reach higher.

At midday, the March corn futures are 8 1/4¢ higher at $6.33. May futures are 7 3/4¢ higher at $6.30. December futures are 1¢ higher at $5.68. 
 
March soybean futures are 18¢ higher at $14.66. 

May soybean futures are 18¢ higher at $14.71. New crop November soybean futures are 12¢ higher at $13.50.

March wheat futures are 8 1/2¢ higher at $7.81.
 
March soymeal futures are 3.20 per short ton higher at $407.90.


March soy oil futures are 1.20 higher at 65.54 per pound.

In the outside markets, the crude oil market is $0.25 per barrel higher at $86.86 the U.S. Dollar is lower, and the Dow Jones Industrials are 7 points higher (+0.02%) at 34,168.

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Ag markets swing higher

On Friday, the CME Group's ag markets are being led by the soybean complex.

In early trading, the March corn futures are 3 3/4¢ higher at $6.29. May futures are 2 3/4¢ higher at $6.25. December futures are 1¢ higher at $5.67. 
 
March soybean futures are 21 1/4¢ higher at $14.69. 

May soybean futures are 19 3/4¢ higher at $14.73. New crop November soybean futures are 16¢ higher at $13.54.

March wheat futures are 4¢ higher at $7.81.
 
March soymeal futures are 6.80 per short ton higher at $411.50.

March soy oil futures are 1.32 higher at 65.66 per pound.

In the outside markets, the crude oil market is $1.65 per barrel higher at $88.26 the U.S. Dollar is lower, and the Dow Jones Industrials are 9 points higher (+0.03%) at 34,170.

On Friday, private exporters reported the following activity:

  • 264,000 metric tons of soybeans for delivery to China during the 2022/2023 marketing year
  • 141,514 metric tons of soybeans for delivery to Mexico during the 2021/2022 marketing year
  •  251,500 metric tons of soybeans received in the reporting period for delivery to unknown destinations during the 2021/2022 marketing year

Bob Linneman, Kluis Advisors, says that the trend this week favored the soybean bulls.

"Many South American ag agencies publicly reduced production estimates, which led to decreased amounts available to export. If the trend continues on this path, then the world soybean balance sheet could quickly get as tight as analysts were expecting last June," Linneman stated in a note to customers. 

Linneman added, "The current corn-to-soybean ratio for new crop is near 2.36. The low seen around Thanksgiving was close to 2.21. For this ratio to get back over the 2.50 milestone (which many analysts suggest is the level at which acres shift from corn to soybeans), we would need to see new crop soybeans rally toward $14.20 and corn stay at current levels. Keep an eye on how corn reacts to strength in the soybean market."
 

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