Corn, soybean, and wheat markets start strong Tuesday

The USDA will project U.S. 2021 acreage this week.

On Tuesday, the CME Group’s farm markets find buyers.

At the close, the March corn futures finished 13¼¢ higher at $5.52¼. May corn futures closed 13¼¢ higher at $5.49¾. New-crop December corn futures ended 9¢ higher at $4.57¾. 
 
March soybean futures settled 12½¢ higher at $13.84½. May soybean futures closed 14¾¢ higher at $13.85¾. New-crop November futures finished 12¾¢ higher at $11.85¾.

March wheat futures closed 20¾¢ higher at $6.57½. 

March soymeal futures settled $1.20 short term higher at $428.40.

March soy oil futures finished 1.23 higher at 47.27¢ per pound.

In the outside markets, the NYMEX crude oil market is $0.65 per barrel higher (+1.09%) at $60.12. The U.S. dollar is higher, and the Dow Jones Industrials are 96 points higher (+0.31%) at 31,555 points.

Britt O’Connell, ever.ag, says that despite a higher finish, the market starts the week lacking strong direction.  

“On the overnight session soybeans were as high as $11.94 and corn $5.51; heading into the back half of the overnight and start of the day trade we struggled to maintain positive gains. Midsession we find ourselves trading the range. Without any fresh bullish news, the bears may wake and capture the market with chatter of a growing South American crop and doubts around the Chinese demand,” O’Connell says.  

Al Kluis, Kluis Advisors, says that investors will be eyeing this week’s acreage projection by the USDA.  

“Watch the nearby corn and soybean charts, and where prices close today. In the last 12 months, prices have often changed trend after a three-day weekend,” Kluis stated in a daily note to customers. “The grain trade will watch what the USDA uses for planted acreage projections at the annual Ag Outlook conference later this week. Private estimates are 7 to 10 million more acres of the three primary crops (corn, soybeans, and wheat). I doubt if the USDA will have a very large projection this early in the year,” Kluis stated in a daily note to customers.

Kluis added, “In Wayzata, Minnesota, the all-time record of -20°F. last night was nearly broken. The 36°F. high next Monday will seem like a heatwave. On Friday, the grain markets closed mixed in a low volume day of trade ahead of the three-day weekend. The freeze damage this weekend in the Southern Plains was worse than expected. It will take a few days to figure out how much damage occurred.”

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