Corn closes where it started, beans higher | Monday, March 22, 2021

Investors start to eye U.S. spring planting weather.

On Monday, the CME Group’s farm markets finish slightly higher, after starting lower.

At the close, the May corn futures finished 8½¢ lower at $5.49. July corn futures settled 7¼¢ lower at $5.31. New-crop December corn futures closed 3½¢ lower at $4.68. 
 
May soybean futures closed 1¼¢ higher at $14.17½. July soybean futures closed 1¢ higher at $14.04½. New-crop November soybean futures ended 4¢ lower at $12.16.

May wheat futures closed ¼¢ higher at $6.27. 

May soymeal futures closed $11.30 short term lower at $396.40.

May soy oil futures closed 2.40¢ higher at 56.37¢ per pound.

In the outside markets, the NYMEX crude oil market is +0.07 higher (+0.11%) at $61.49. The U.S. dollar is lower, and the Dow Jones Industrials are 163 points higher (+0.50%) at 32,791 points.

Jason Roose, U.S. Commodities, says that investors are already looking ahead to next week’s USDA Report. 

“Improving South America weather and positioning ahead of next week’s crop report is weakening the corn market today; spread activity in the bean oil along vegetable oil demand has given beans mild support, after early losses,” Roose says.

Al Kluis, Kluis Advisors, says that the way last week’s markets ended may be telling for the week ahead.  

“The rally on Friday brought back most of the losses from Thursday in the corn and soybean market in a choppy week of trade,” Kluis stated in a daily note to customers. “For most farmers, new-crop corn offers a higher profit per acre than soybeans. If we get an early spring, corn acres will increase more than the trade is expecting.”

Kluis added, “I am watching the bull spreads in corn and soybeans. The bull spreads even worked Thursday when the markets moved sharply lower. In Friday’s rally, the July vs. December corn spread gained 5¢, and the July vs. November soybean spread gained 9¢. This shows strong demand.”

Dave Tolleris, WxRisk.com, says that the weather models disagree on U.S April weather.

“The extended models do not agree for week one, but the week two and three suggest normal to above-average temps and overall a very wet pattern through the middle of April,” Tolleris stated in a Kluis Advisors note to customers Monday.  

Tolleris added, “In South America this weekend, it was dry in Brazil. Some rain again moved through central Argentina. Now some of the models are projecting hot and dry conditions moving into central Brazil by later this month.”

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