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Corn, soybean markets end lower | Thursday, September 16, 2021

China buys a fresh batch of U.S. soybeans Thursday.

On Thursday, the CME Group’s farm markets turn lower, with a broad-based risk off environment.

At the close, the Dec. corn futures finished 4¢ lower at $5.29. March futures finished 4¢ lower at $5.36½. May corn futures settled 3½¢ lower at $5.41. 
November soybean futures closed 1¢ higher at $12.96. 

Jan. soybean futures settled 1¢ higher at $13.04½. March soybean futures closed 1½¢ higher at $13.08.

Dec. wheat futures ended ¾¢ higher at $7.13.
Dec. soymeal futures settled $4.50 per short ton higher at $344.10.

Dec. soy oil futures closed 1.53¢ lower at 56.84¢ per pound.

In the outside markets, the NYMEX crude oil market is $0.09 lower (-.12%) at $72.52. The U.S. dollar is higher, and the Dow Jones Industrials are 52 points lower (-0.15%) at 34,762 points.

On Thursday, private exporters reported to the USDA export sales of 132,000 metric tons of soybeans for delivery to China during the 2021/2022 marketing year.

The marketing year for soybeans began Sept. 1.

Separately, the USDA’s Weekly Export Sales Report Thursday shows weak demand figures for corn. Here are the totals:

  • Corn = 248,900 metric tons (mmt.) vs. the trade’s expectations of 500,000 to 1.00 mmt. 
  • Soybeans = 1.26 mmt. vs. the trade’s expectation of 600,000 to 1.40 mmt.
  • Wheat = 617,000 mt. vs. the trade’s expectation of 300,000 to 700,000 mt.
  • Soybean meal = 137,800 mt. vs. the trade’s expectation of 50,000 to 250,000 mt.

Bob Linneman, Kluis Advisors, says that risk premium is being built into the market. 

“Grain prices are moving higher as harvest is getting underway in the United States. Scattered reports of better-than-expected yield results in the morning are followed with reports of disappointment in the afternoon. For the U.S. to hit yield targets of 176 bushels per acre for corn and 50 bpa for soybeans, we cannot afford many disappointing reports. Grain traders are hoping to see China step in and buy U.S. grain, as happened last year. There are a lot of ‘what if’ scenarios being analyzed,” Linneman stated in a note to customers.

Linneman added, “The grain charts are looking very favorable for the bull camp. The outside-day-higher that was etched on many of the grain charts last Friday (USDA report day) matched well with the oversold momentum indicators. If we are only trading technical indicators, then the bulls will have their work cut out for them, since major moving averages loom overhead.”

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