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Corn closes flat, soybean prices up a dime | Wednesday, December 8, 2021

Mexico buys 73.0 million bushels of U.S. corn in a one-time purchase.

Ahead of tomorrow’s USDA reports, the CME Group’s farm markets finished mostly higher Wednesday.

At the close, the March corn futures finished 1¼¢ higher at $5.87. May futures ended ½¢ higher at $5.89. July corn futures settled ¼¢ higher at $5.88. 
 
January soybean futures closed 10½¢ higher at $12.61. 

March soybean futures finished 10½¢ higher at $12.68½. May soybean futures ended 10¼¢ higher at $12.76.

March wheat futures closed 14½¢ lower at $7.94.
 
Jan. soymeal futures finished $7.50 per short ton higher at $357.20.


Jan. soy oil futures closed 1.55¢ lower at 55.55¢ per pound.

In the outside markets, the crude oil market is $0.26 per barrel higher at $72.31, the U.S. dollar is lower, and the Dow Jones Industrials are 18 points lower (-0.05%) at 35,701.

Jack Scoville, PRICE Futures Group, says that it was a stronger trading day for everything but wheat.

“Wheat was lower on forecasts for improved weather in the great Plains. On Monday, the crop ratings were bad, so it will take some real good weather there to get good establishment. Corn was not much either way. Strong export demand countered the ethanol changes put out by the EPA yesterday,” Scoville says.  

Scoville added, “Beans rallied on the weaker U.S. dollar, which made our products cheaper. We need new demand for that market. China’s buying in relatively small amounts is not doing the trick, so the weaker dollar can only help.”

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Soybeans reverse higher

After trading lower, the CME Group’s soybean prices find higher ground.

At midsession, the March corn futures are ½¢ higher at $5.86. May futures are unchanged at $5.88. July corn futures are ½¢ lower at $5.88. 
 
January soybean futures are 7½¢ higher at $12.57¼. 

March soybean futures are 7¼¢ higher at $12.65½. May soybean futures are 7¼¢ higher at $12.72.

March wheat futures are 14½¢ lower at $7.94.
 
Jan. soymeal futures are $6.30 per short ton higher at $356.00.


Jan. soy oil futures are 1.59¢ lower at 55.51¢ per pound.

In the outside markets, the crude oil market is $0.83 per barrel higher at $72.88, the U.S. dollar is lower, and the Dow Jones Industrials are 87 points lower (-0.25%) at 35,631.

Ag markets start lower

On Wednesday, the CME Group’s farm markets fade tomorrow’s USDA report.

In early trading, the March corn futures are 1¢ lower at $5.85. May futures are 1½¢ lower at $5.87. July corn futures are 1½¢ lower at $5.87. 
 
January soybean futures are 6¢ lower at $12.44¼. 

March soybean futures are 5¾¢ lower at $12.52½. May soybean futures are 5¼¢ lower at $12.60¼.

March wheat futures are 6¢ lower at $8.02.
 
Jan. soymeal futures are $3.20 per short ton higher at $352.90.


Jan. soy oil futures are 1.93¢ lower at 55.17¢ per pound.

In the outside markets, the crude oil market is $0.24 per barrel lower at $71.81, the U.S. dollar is lower, and the Dow Jones Industrials are 41 points higher (+0.12%) at 35,760.

On Wednesday, private exporters reported sales of:

  • 1,844,040 metric tons (73.0 million bushels) of corn for delivery to Mexico. Of the total, 1,089,660 metric tons is for delivery during the 2021/2022 marketing year and 754,380 metric tons is for delivery during the 2022/2023 marketing year.
  • 130,000 metric tons of soybeans for delivery to China during the 2021/2022 marketing year.

On Thursday, the USDA will release its December Supply/Demand and WASDE Reports at 11:00 a.m. CT.

READ MORE: USDA finds that big pork plants recovered quickly from COVID-19.

Bob Linneman, Kluis Advisors, says that investors are digesting bearish news this week.

“Traders were digesting less-than-favorable export data for October. Although this is not new information to traders, at some point the market will have to adjust price to reflect the lagging export data. Some hope we will still see a big uptick in exports, but that time frame is narrowing quickly. Keep a close eye on the energy sector as traders work out the chart damage that was done the last two weeks. If the current recovery rally is a resumption of the bull trend, then the grains should benefit to some degree,” Linneman stated in a note to customers.

Linneman added, “Crude oil has now rebounded over $10 off the low hit last Thursday. If the crude bulls are able to get above the major moving averages, then the ethanol industry will likely breathe a sigh of relief. Stabilizing the energy sector should let the grain traders return their focus to the upcoming USDA report and impacts to supply and demand.”

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