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China's 6-day streak of U.S. corn purchases stops | Friday, May 21, 2021

Soybean basis seen tightening, analyst says.

On Friday, the CME Group’s farm markets close lower.

At the close, the July corn futures closed 5¢ lower at $6.59¾. New-crop September futures finished 5¾¢ lower at $5.73. December corn futures closed 5¼¢ lower at $5.46¼. 
 
July soybean futures ended 7¢ lower at $15.26¼. August soybean futures settled 8¢ lower at $14.72. New-crop November soybean futures closed 7¼¢ lower at $13.60½.

July wheat futures settled 1¢ lower at $6.74. 

July soymeal futures finished $2.20 per short ton lower at $398.90.

July soy oil futures closed 0.27¢ lower at 65.49¢ per pound.

In the outside markets, the NYMEX crude oil market is +1.87 higher (+3.02%) at $63.81. The U.S. dollar is higher, and the Dow Jones Industrials are 123 points higher (+0.36%) at 34,207 points.

Bob Linneman, Kluis Advisors, says that investors are watching the leadership of the corn bulls. “Double-digit gains for September through July 2022 contracts and a 6¢ gain for July contract was a much-needed win for the bulls. Soybean prices ended the day down a nickel in July and a penny in November. The weekly export sales report was solid for corn and slightly below traders’ expectations for soybeans. The string of impressive corn sales on the daily export sales reports continued Thursday. Will we see another sale this morning? China has purchased a staggering 10.7 million tons of new-crop corn so far. This pace is unprecedented. Will it continue?” 

Linneman added, “The national average for soybean basis has fallen from its peak over the past two weeks. However, we are still at levels that are much tighter than normal. It is only the third week of May and end-users are still having issues securing physical bushels. We could see basis tighten again at some point this summer.”

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