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Soybean prices plunge 26¢, with improved South America crop weather | Monday, January 10, 2022

Investors await a huge data dump from the USDA Wednesday.

On Monday, the CME Group’s farm markets closed double-digits lower.

At the close, the March corn futures finished 7¢ lower at $5.99. May futures ended 6½¢ lower at $6.01. July corn futures closed 5½¢ lower at $5.99. 
 
March soybean futures finished 25¼¢ lower at $13.84. 

May soybean futures settled 25¢ lower at $13.93. July soybean futures closed 24¢ lower at $13.99.

March wheat futures finished 3½¢ higher at $7.62.
 
March soymeal futures closed $8.70 per short ton lower at $416.30.


March soy oil futures ended 0.75¢ lower at 58.03¢ per pound.

In the outside markets, the crude oil market is $1.03 per barrel lower at $77.87. The U.S. dollar is higher, and the Dow Jones Industrials are 326 points lower (-1.31%) at 35,905.

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Soybeans fall 26¢

The CME Group’s farm markets deepen their losses.

At midsession, the March corn futures are 6¢ lower at $6.00. May futures are 6½¢ lower at $6.01. July corn futures are 6¢ lower at $5.98. 
 
March soybean futures are 26¼¢ lower at $13.84. 

May soybean futures are 26¾¢ lower at $13.92. July soybean futures are 26¾¢ lower at $13.97.

March wheat futures are 7¢ higher at $7.65.
 
March soymeal futures are $9.70 per short ton lower at $415.30.


March soy oil futures are 0.69¢ lower at 58.09¢ per pound.

In the outside markets, the crude oil market is $0.50 per barrel lower at $78.40. The U.S. dollar is higher, and the Dow Jones Industrials are 477 points lower (-1.32%) at 35,753.

Jack Scoville, PRICE Futures Group, says that the fallout in soybeans has to do with improving weather in South America. 

“It’s a weather market and for now things look to improve in South America. Less rain north which is needed and some showers appearing in the states of Parana and RGDS also needed. Argentina and Paraguay will stay dry and hot this week but should get some relief next week in the form of rain,” Scoville says.

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Farm markets fall

On Monday, the CME Group’s farm markets start the week lower.

In early trading, the March corn futures are 3¢ lower at $6.03¾. May futures are 3½¢ lower at $6.04. July corn futures are 3¼¢ lower at $6.00. 
 
March soybean futures are 5¼¢ lower at $14.05. 

May soybean futures are 5¾¢ lower at $14.13. July soybean futures are 6¼¢ lower at $14.17.

March wheat futures are 9¢ lower at $7.49.
 
March soymeal futures are $14.00 per short ton higher at $425.00.


March soy oil futures are 0.12¢ lower at 58.78¢ per pound.

In the outside markets, the crude oil market is $0.18 per barrel lower at $78.72. The U.S. dollar is higher, and the Dow Jones Industrials are 139 points lower (-0.39%) at 36,092.

On Monday, private exporters reported sales of 132,000 metric tons of corn for delivery to Mexico. Of the total, 77,000 metric tons is for delivery during the 2021/2022 marketing year and 55,000 metric tons is for delivery during the 2022/2023 marketing year.

Al Kluis, Kluis Advisors, says that investors eye this week’s USDA report.

“The weather forecasts are still for hot dry conditions in southern Brazil and Argentina this week. After a lower start, prices are fighting back,” Kluis stated in a note to customers. “South American corn and soybean estimates will move lower again this week as hot dry conditions expand into more of Argentina. Even if the pattern changes after January 15, much of the damage is nonreversible.” 

Kluis added, “I am watching what the USDA says about the final crop size of the U.S. 2021 corn and soybean crops. Late yields were better than expected, and I think that both planted and harvested acreage may move higher in the final crop production report on Wednesday.”

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