Ag markets closed mixed, following USDA data | Thursday, June 10, 2021
On Thursday, the CME Group's farm markets closed mixed, following the USDA’s June Supply/Demand Report.
The USDA released its monthly Supply/Demand Report and World Production estimates at 11:00am.
At the close, the July corn futures finished 8 1/4¢ higher at $6.99. New crop September futures closed 6 1/4¢ higher at $6.38 1/4. December corn futures settled 6 3/4¢ higher at $6.16 1/2.
July soybean futures closed 18 1/4¢ lower at $15.44. August soybean futures closed 13¢ lower at $15.10. New crop November soybean futures ended 11 1/4¢ higher at $14.59 1/4.
July wheat futures closed 1/4¢ higher at $6.82 1/4.
July soymeal futures settled $4.80 per short ton lower at $381.60.
July soy oil futures closed $1.13 lower at 70.46¢ per pound.
In the outside markets, the NYMEX crude oil market is +0.35 higher (+0.50%) at $70.31. The U.S. dollar is higher, and the Dow Jones Industrials are 74 points higher (+0.22%) at 34,521 points.
Separately, the USDA’s Weekly Export Sales Report Thursday shows weak demand figures for corn. Here are the totals:
- Corn = 216,000 metric tons (mt.) vs. the trade’s expectations of 300,000 to 1.0 mmt.
- Soybeans = 220,700 mt. vs. the trade’s expectation of 100,000 to 600,000 mt.
- Wheat = 325,900 mt. vs. the trade’s expectations of 200,000 to 450,000 mt.
- Soybean meal = 140,200 mt. vs. the trade’s expectations of 100,000 to 300,000 mt.
Al Kluis, Kluis Advisors, says that investors prepare for today’s USDA Report.
“On Tuesday, the July vs. December corn spread posted six consecutive lower lows and lower highs on the daily chart as the spread slid from $1.17 to 68¢. Wednesday was the first day of higher high and higher low. Soybeans saw the opposite trade unfold between the July and November contract as that spread fell to its lowest level since mid-December. The Goldman roll (index funds rolling out of the front month contract and into the next closest month) will be wrapping up on Friday,” Kluis stated in a note to customers.
Kluis added, “Traders are expecting small adjustments to U.S. production in the USDA report today. The uncertainty will be South American production updates in the WASDE data. If numbers come in lower than expected for South America, then the world balance sheet could be more sensitive to any production problems the U.S. may have this summer.”