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311487

Corn, soybean markets rebound Thursday

USDA’s weekly export sales figures were favorable for soybeans.

On Thursday the CME Group’s farm markets closed mostly higher.

At the close, the May corn futures finished 4¾¢ higher at $5.38½. July corn futures ended 4¢ higher at $5.28. New-crop December corn futures finished 3¼¢ higher at $4.83¾. 
 
May soybean futures settled 3¢ higher at $14.13¾. July soybean futures are 5½¢ higher at $14.01¾. New-crop November soybean futures closed 5¢ higher at $12.43¾.

May wheat futures finished 10¢ lower at $6.42¼. 

May soymeal futures closed $2.00 short term lower at $404.60.

May soy oil futures finished 1.10¢ higher at 54.61¢ per pound.

In the outside markets, the NYMEX crude oil market is +1.54 higher (+2.39%) at $65.98. The U.S. dollar is lower, and the Dow Jones Industrials are 268 points higher (+0.83%) at 32,646 points.

Jason Roose, U.S. Commodities, says that continued price spreading is expected in the grain contracts.

“Grains continue to be in a wide range trade with bull spreading in the corn leading the way today; exports did show that China still has a small appetite for corn, which is supportive, but South America competition and firm dollar could limit purchases. We should continue to see active spreading with a large South American crop and U.S. planting just around the corner,” Roose says.

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

  • Corn = 396,000 metric tons (mt.) vs. the trade’s expectations of 400,000 to 750,000 mt. 
  • Soybeans = 351,000 mt. vs. the trade’s expectations of 200,000 to 350,000 mt.
  • Wheat = 330,000 mt. vs. the trade’s expectations of 150,000 to 350,000 mt. 
  • Soybean meal = 262,000 mt. vs. the trade’s expectations of 100,000 to 250,000

Bob Linneman, Kluis Advisors, says that the market bears took control early Wednesday and never looked back.  

“By the close, May corn and soybean contracts closed below the prior two-day low. Further reports about the spreading of African swine fever (ASF) in China is creating a headline for the bears to run with. Weather in South America is still worth watching as harvest progresses and the farmers get closer to wrapping up the planting of the second-crop acres. Weather in the U.S. is going to get the main spotlight soon enough. The U.S. cannot afford to have a sub-trendline production year for corn or soybeans,” Linneman stated in a daily note to customers.

Linneman added, “Declining grain prices in China have many traders nervous about the upcoming need for all the U.S. grain they have bought in the last six months. However, recall that China depleted much of their grain reserve during the trade war. Will they want to gamble not restocking some reserves and cancel some imports?”

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