Corn closes near the $6.00 level | Wednesday, April 14, 2021
On Wednesday, the CME Group’s farm markets added to this week’s gains.
At the close, the May corn futures closed 14¢ higher at $5.94.
July corn futures settled 13¢ higher at $5.79½. New-crop December corn futures finished 7¢ higher at $5.11.
May soybean futures finished 20½¢ higher at $14.10. July soybean futures closed 17½¢ higher at $14.02½. New-crop November soybean futures ended 12¾¢ higher at $12.64¼.
July wheat futures closed 16¾¢ higher at $6.50¾.
July soymeal futures ended $3.00 short term higher at $403.00.
July soy oil futures closed 1.07 higher at 52.22¢ per pound.
In the outside markets, the NYMEX crude oil market is +2.95 higher (+4.90%) at $63.13. The U.S. dollar is lower, and the Dow Jones Industrials are 118 points higher (+0.35%) at 33,795 points.
Al Kluis, Kluis Advisors, says that investors will be watching crop-weather in both North and South America for price direction.
“On Tuesday, we had weather concerns – first in Brazil, where private trade estimates of corn yields on the double-crop corn continue to fall, and then in the U.S. where cool conditions may delay planting and emergence. These two factors combined to rally prices. Some of Monday’s losses were regained Tuesday and in the early trade today,” Kluis stated in a note to customers.
Kluis added, “I am watching the U.S. weather and extended weather forecasts. The current forecast through April now calls for cool temps across the Corn Belt, with a lot of rain in the Delta. The 11- to 15-day forecast brings in normal temps and normal precipitation. It looks like the early spring forecast from two weeks ago was a bust.”
The current new-crop soybean-to-corn ratio (2.5 to 1) will not buy many more soybean acres, Kluis says. “The biggest switch may occur in spring wheat, where the new-crop soybean-to-spring wheat price ratio is 1.9 to 1.0.,” he stated in a note customers.