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Corn closes higher, soybean prices lower | Thursday, October 28, 2021

USDA’s weekly export sales figures missed expectations.

On Thursday, the CME Group’s farm markets end a mixed trading day mostly higher.

At the close, the Dec. corn futures settled 5½¢ higher at $5.62. March futures finished 5¼¢ higher at $5.71. May corn futures ended 5¼¢ higher at $5.75. 
November soybean futures settled 5½¢ lower at $12.33¾. 

Jan. soybean futures closed 3¾¢ lower at $12.46. March soybean futures settled 3¢ lower at $12.56.

Dec. wheat futures ended 12¾¢ higher at $7.72.
Dec. soymeal futures closed unchanged at $330.90.

Dec. soy oil futures settled 0.55¢ lower at 60.87¢ per pound.

In the outside markets, the crude oil market is $0.11 per barrel higher at $82.77, the U.S. dollar is lower, and the Dow Jones Industrials are 171 points higher (+0.49%) at 35,664.

Separately, the USDA’s Weekly Export Sales Report Thursday shows mild demand figures for corn and soybeans.

Corn = 890,400 metric tons (mt.) vs. the trade’s expectation of 800,000 to 1.30 mmt. 

Soybeans = 1.183 mmt. vs. the trade’s expectation of 1.2 mmt to 2.0 mmt.

Wheat = 269,300 mt. vs. the trade’s expectation of 200,000 to 500,000 mt.

Soybean meal = 162,000 mt.

PJ Quaid, R.J. O’Brien broker, says that new money is coming in and buying corn.

“Open interest is climbing. Also, ethanol margins are also very strong and look to be for a while, so plant owners are scooping up all the corn they can,” Quaid says. 

He added, “And, it looks like some type of Congressional spending package is going to pass. So, that will be inflationary and will just throw a little more gas on the fire.” 

Bob Linneman, Kluis Advisors, says that support for the corn market is coming from the ethanol producers.

“Traders attributed the strength in corn to the strong ethanol demand, since ethanol margins are quite profitable. It makes sense that processors are trying to get corn so they can take advantage of the strong margins, considering the strong basis for corn through harvest,” Linneman stated in a note to customers.

Linneman added, “Can strong demand for ethanol support corn futures through winter? That seems like a tall order at this time, but a consistent flow of bullish data could be enough to convince traders that being long corn is the better trade.”

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