Corn market has little reaction to huge China purchase | Wednesday, March 17, 2021
On Wednesday, the CME Group’s farm markets are watching to see if investors will react to the huge purchases of U.S. corn that China has made this week.
At the close, the May corn futures finished 3¾¢ higher at $5.58. July corn futures settled ¾¢ higher at $5.42½. New-crop December corn futures settled 2¼¢ lower at $4.75½.
May soybean futures closed 5½¢ lower at $14.17½. July soybean futures finished 7¾¢ lower at $14.06¾. New crop November soybean futures ended 9½¢ lower at $12.35½.
May wheat futures closed 7¢ lower at $6.40.
May soymeal futures are $1.20 short term lower at $404.90.
May soy oil futures are 0.49¢ lower at 54.60¢ per pound.
In the outside markets, the NYMEX crude oil market is -0.27 lower (-0.42%) at $64.53. The U.S. dollar is lower, and the Dow Jones Industrials are 144 points higher (+0.44%) at 32,970 points.
On Wednesday, private exporters reported to the USDA export sales of 1,224,000 metric tons of corn for delivery to China during the 2020/2021 marketing year.
The marketing year for corn began Sept. 1.
Bob Linneman, Kluis Advisors, says that traders are likely waiting to see if further sales hit the daily reports before the weekly update on Thursday.
“Reports from South America are suggesting the excessive rainfall will have a bigger negative impact than previously thought. Even if this is true, it will be a few months before official data is provided. In the U.S., the Federal Reserve Board will announce any changes to short-term interest rates this afternoon. Any major changes to their thoughts could impact the U.S. dollar and the stock market,” Linneman stated in a daily note to customers.
Linneman added, “Many of the charts have tested moving average support lines or the bottom end of trading channels in the past few days. If the bulls are able to continue with higher highs and higher lows, then we could see momentum build into the end-of-month reports.”