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Corn, soybean prices close higher | Monday, October 18, 2021

Investors watch China’s soybean demand.

On Monday, the CME Group’s farm markets reverse higher.

At the close, the Dec. corn futures closed 7¢ higher at $5.32. March futures finished 6¾¢ higher at $5.40. May corn futures ended 5½¢ higher at $5.44. 
November soybean futures closed 3¾¢ higher at $12.21. 

Jan. soybean futures settled 2¼¢ higher at $12.29. March soybean futures ended 2¢ higher at $12.37.

Dec. wheat futures closed 2¢ higher at $7.36.
Dec. soymeal futures ended $1.30 per short ton higher at $317.90.

Dec. soy oil futures closed 0.73¢ higher at 62.02¢ per pound.

In the outside markets, the NYMEX crude oil market is $0.12 higher (+0.15%) at $82.40. The U.S. dollar is lower, and the Dow Jones Industrials are 76 points lower (-0.22%) at 35,218 points.

Jason Roose, U.S. Commodities, says that the farm markets still have some support, despite the harvest progress.

“Grains have mild support from a mixed overnight trade with slow producer selling and a renewed interest from China purchasing soybeans last week. Also, strong seasonal support and a rising energy market will keep this market volatile in an inflation environment,” Roose says.

Al Kluis, Kluis Advisors, says that it’s worth watching the crush margins for ethanol plants.

“The rally in ethanol prices will help keep corn basis bids firm. The Energy Information Agency (EIA) report last week showed a large (118,000 barrel) increase in weekly ethanol production. At the same time, ethanol inventories went down. The current estimate is that ethanol plants in Iowa have a positive $1.15 per bushel operating margin crushing corn into ethanol,” Kluis stated in a note to customers.

Kluis added, “Will China continue to make large soybean purchases? The weekly USDA Export Sales report last Friday showed soybean sales of 1.148 million metric tons (42.2 million bushels). The daily USDA sales announcement on Friday showed another 855,000 metric tons.  Active Chinese buying should continue in the weeks ahead, since soybean crushing margins have turned positive in China.”

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