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Corn closes limit down, soybeans drop 58¢ | Thursday, May 13, 2021

Mississippi River bridge closure blocks grain barge transportation.

On Thursday, the lower CME Group’s farm markets hit by the bearish news of stalled grain barges on the Mississippi River.

At the close, the July corn futures finished at its daily limit of 40¢ lower at $6.74. New-crop September futures closed 38½¢ lower at $5.83. December corn futures finished 34½¢ lower at $5.58. 
July soybean futures settled 58¾¢ lower at $15.84½. August soybean futures closed 50½¢ lower at $15.22. New-crop November soybean futures closed 47¼¢ lower at $13.96¼.

July wheat futures closed 28¾¢ lower at $7.01½. 

July soymeal futures closed $27.40 per short ton lower at $421.40.

July soy oil futures ended 0.62¢ lower at 65.78¢ per pound.

In the outside markets, the NYMEX crude oil market is -2.41 lower (-3.65%) at $63.37. The U.S. dollar is lower, and the Dow Jones Industrials are 511 points higher (+1.52%) at 34,099 points.

PJ Quaid, independent broker, says that the market is reacting negatively to the news of the Mississippi River bridge issue slowing barge traffic.

“The crack in the bridge has made moving grains a logistical nightmare. It has really thrown a wet blanket on the market and has the longs running for the exit,” Quaid says.  

Quaid added, “The government is not giving clear guidance.”

On Thursday, private exporters reported to the USDA export sales of 680,000 metric tons of corn for delivery to China during the 2021/2022 marketing year.

The marketing year for corn began Sept. 1.

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

Corn = 2.19 million metric tons (mmt.) vs. the trade expectations of 800,000 to 2.1 mmt. Of that total, China bought 1.36 mmt.

Soybeans = 196,800 mt. vs. the trade’s expectation of 200,000 to 650,000 mt.

Wheat = 298,300 mt. vs. the trade’s expectations of 200,000 to 400,000 mmt.

Soybean meal = 106,600 mt. vs. the trade’s expectations of 70,000 to 280,000 mt.  

Bob Linneman, Kluis Advisors, says that investors continue to see yesterday’s USDA data as price-negative.  

“Soybean bulls were able to close higher, but prices were well off the intra-day high. Traders were slightly surprised that world ending stocks for corn fell, when the USDA reported decreased demand for new crop. Old-crop corn stocks fell, which was in line with expectations. Old-crop soybean stocks continue to hold steady at 120 million bushels. Although few traders believe this number, the market has shown it does not. Prices continue to increase for old-crop soybeans. New-crop soybean carryout at 140 million bushels is the lowest initial estimate in over 20 years,” Linneman stated in a note to customers.  

Linneman added, “The grain trade is building in some very low ending stocks numbers from the USDA for the report out at 11 a.m. today. When everyone is expecting a bullish report, you need to be cautious. First, you never know what the USDA will project. Second, if you get a bullish report, then prices also need to have a positive performance from the time of the release of the report into the close of trade.”

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