Investors believe rain is coming; corn, soybeans close mostly lower | Wednesday, June 16, 2021
On Wednesday, the CME Group’s farm markets closed mostly lower.
At the close, the July corn futures settled 5½¢ higher at $6.73. New-crop September futures closed 3¼¢ lower at $5.88¾. December corn futures closed 1¼¢ lower at $5.72¾.
July soybean futures closed 17¼¢ lower at $14.48½.
August soybean futures closed 24¢ lower at $14.02. New-crop November soybean futures finished 30½¢ lower at $13.43.
July wheat futures finished 1¼¢ higher at $6.62.
July soymeal futures settled $6.80 per short ton higher at $379.20.
July soy oil futures closed 3.50¢ lower at 62.07¢ per pound.
In the outside markets, the NYMEX crude oil market is +0.29 lower (-0.40%) at $71.83. The U.S. dollar is higher, and the Dow Jones Industrials are 308 points lower (-0.90%) at 33,991 points.
On Wednesday, private exporters reported to the USDA export sales of 153,416 metric tons of corn delivery to unknown destinations during the 2021/2022 marketing year.
The marketing year for corn began Sept. 1.
Al Kluis, Kluis Advisors, says that the markets will react day-to-day to Iowa’s rain chances.
“The weather models are going to flip. Last week, the models showed hot and dry and tough growing conditions. Now, five days later, the models project 3 to 6 inches of rain with a bull’s eye on Iowa. The reality: somewhere in between. If Iowa gets 3 to 6 inches, then the problem is probably solved; 1 to 2 inches helps, but does not solve the long-term moisture deficit,” Kluis stated in a note to customers.
Kluis added, “What will happens in Iowa? When will the rain actually hit? Crop conditions have taken a big hit in Iowa over the last three weeks and are likely to move lower again in the report next Monday. The focus is on Iowa as the No. 1 corn production state and No. 2 in soybeans. However, the dry conditions and lower yield projections also cover almost all of Minnesota.”
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