Corn hits limit up, soybeans close 29¢ higher | Monday, April 26, 2021

On Monday, the CME Group’s farm markets look to end the month’s trading on a high note.

At the close, the May corn futures hit its daily limit high of 25¢ higher at $6.80½.

July corn futures closed on its daily limit high of 25¢ higher at $6.57¼. New-crop December corn futures are 17¼¢ lower at $5.68¾. 
 
May soybean futures closed 29½¢ higher at $15.69¼. July soybean futures finished 23¾¢ higher at $15.39½. New-crop November soybean futures ended 20¼¢ higher at $13.62¼.

July wheat futures settled 27¼¢ higher at $7.39¼. 

July soymeal futures ended $5.70 short ton higher at $431.50.

July soy oil futures closed +2.11 higher at 60.89¢ per pound.

In the outside markets, the NYMEX crude oil market is -0.10 lower (-0.16%) at $62.04. The U.S. dollar is higher, and the Dow Jones Industrials are 22 points lower (-0.07%) at 34,020 points.

On Monday, private exporters reported to the USDA export sales of 120,000 metric tons of soybeans for delivery to unknown destinations during the 2021/2022 marketing year.

The marketing year for soybeans began Sept. 1.

Al Kluis, Kluis Advisors, says that the grain bulls are using rumors of increased demand to push up the markets.

“Happy Monday – and get ready for another active week. The May options expired Friday, and created some extreme volatility,” Kluis stated in a note to customers. “The way the bull spreads keep working, corn and soybean markets will keep moving higher. 

Kluis added, “I am watching the extended weather forecasts for south-central Brazil. The dry areas missed out on the rain over this weekend and now the extended forecasts are dry. Many private analysts are again expected to cut the size of the Brazilian double-crop corn again this week.”

David Tolleris, WxRisk.com, says that the Corn Belt’s planting weather could be interrupted with rain events in May.

“Rain and some snow moved across the northern Corn Belt over the weekend. More rain is forecast later this week and again next week in most areas. The extended forecast models show cool temps and a lot of rain across the Corn Belt into early May,” Tolleris stated in Kluis Advisor’s daily note to customers. 

Tolleris added, “For South America, the weekend rains were disappointing, and it looks like the overall pattern for Brazil stays dry.”

Money managers last week raised their net-long positions, or bets on higher prices, on soybeans to the highest level since the end of 2020, according to the Commodity Futures Trading Commission.

Investors increased their bullish bets on soybeans to a net-160,094 futures contracts, the CFTC said in a report.

That’s up from 130,313 contracts the previous week and the highest level since the seven days that ended on Dec. 29, government data show.

For corn, meanwhile, speculators reduced their net longs in corn to 380,083 futures contracts as of April 20, down from 397,231 contracts the previous week, backing off multiyear highs.

In wheat, hedge funds and other large money managers raised their bullish bets on hard-red winter futures to a net-18,608 contracts last week.