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Corn, soybean markets react quietly to USDA reports | Monday, July 12, 2021

The outside markets are unfriendly to the grain prices.

On Monday, the CME Group’s farm markets had little reaction to today’s USDA Supply/Demand, WASDE Reports.

At the close, the Sept. corn futures finished 15¾¢ higher at $5.45¾. New-crop Dec. futures closed 16¢ higher at $5.33½. March corn futures ended 15½¢ higher at $5.40. 
 
August soybean futures settled 25¢ higher at $14.04. 

Sept. soybean futures closed 19¾¢ higher at $13.58. New-crop November soybean futures finished 21¼¢ higher at $13.50 1/4.

Sept. wheat futures closed 25¾¢ higher at $6.40¾. 

Aug. soymeal futures closed $2.90 per short ton higher at $357.00.

Aug. soy oil futures settled 1.70¢ higher at 64.05¢ per pound.

In the outside markets, the NYMEX crude oil market is -0.40 lower (-0.54%) at $74.16. The U.S. dollar is higher, and the Dow Jones Industrials are 110 points higher (+0.32%) at 34,980 points.

PJ Quaid, independent broker, says that the market didn’t think much of the USDA numbers.

“These numbers rarely budge much from the end of June number. Dec corn futures are back above the 100-day moving average and that keeps bulls happy,” Quaid says. 

Trade ranges are starting to tighten, Quaid says.  

“Dec. only has a 15¾¢ range. That does not bode well for traders long volatility. Volatility is breaking. Corn needs bigger ranges to pay for the volatility level corn was trading at last week,” Quaid says.

Al Kluis, Kluis Advisors, says that investors will be watching two USDA Reports today for price direction. 

“I am watching both USDA report releases today. I think the trade is underestimating corn used for ethanol this year and next, and that the ending stocks of corn may be less than the trade expects for the 2021/2022 marketing year. As always, the most important part of the day is to watch the trade reaction after the report and the price action — from 11:30 a.m. into the close of trade,” Kluis stated in a note to customers.  

Kluis added, “The USDA Crop Progress report later today will show corn and soybean ratings unchanged to 1% better. Even with slight improvement, these mid-July ratings are in the bottom 30% of the crop ratings for this week over the last 35 years. Unless we get timely rain each week for the rest of the year, it will be difficult to get trendline corn and soybean yields this year in the U.S.”

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