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Soybeans, wheat close double-digits higher | Thursday, December 2, 2021

Crude oil prices reverse higher, despite new OPEC announcement.

At the close, the CME Group’s wheat and soybean markets finished double-digits higher.

At the close, the March corn futures settled 5¼¢ higher at $5.76¾. May futures finished 6½¢ higher at $5.79. July corn futures ended 5½¢ higher at $5.79. 
 
January soybean futures settled 16¢ higher at $12.44. 

March soybean futures closed 15¢ higher at $12.50. May soybean futures closed 14¢ higher at $12.57.

March wheat futures closed 24¼¢ higher at $8.15.
 
Jan. soymeal futures finished $0.30 per short ton lower at $348.80.


Jan. soy oil futures closed 1.16¢ higher at 56.34¢ per pound.

In the outside markets, the crude oil market is $1.45 per barrel higher at $67.02, the U.S. dollar is higher, and the Dow Jones Industrials are 665 points higher (+1.96%) at 34,687.

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Farm markets hit daily highs

On Thursday, the CME Group’s soybean complex has caught a bid, with crop weather concerns in Brazil.

At midsession, the March corn futures are 9¼¢ higher at $5.80¾. May futures are 8½¢ higher at $5.81. July corn futures are 8¢ higher at $5.81. 
 
January soybean futures are 20¾¢ higher at $12.49. 

March soybean futures are 20¢ higher at $12.55. May soybean futures are 19½¢ higher at $12.62.

March wheat futures are 27¼¢ higher at $8.18.
 
Jan. soymeal futures are $1.30 per short ton higher at $350.40.


Jan. soy oil futures are 1.23¢ higher at 56.41¢ per pound.

In the outside markets, the crude oil market is $1.27 per barrel higher at $66.84, the U.S. dollar is higher, and the Dow Jones Industrials are 668 points higher (+1.96%) at 34,690.
 

READ MORE: Highest U.S. Farm Income in Eight Years, but Headwinds Ahead

Jason Roose, U.S. Commodities, says that uncertainty creates volatility in this holiday market. 

“Inflation buying stepped up early, with strong gains in the energy and stocks. Plus, there is slow producer grain selling that is helping push up the market. Strong crush margins and record ethanol demand are adding to the aggressive buying the past few days," Roose says.

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Corn, Soybean prices jump

On Thursday, the CME Group’s farm markets started higher, but gains are limited due to a falling crude oil market.

In early trading, the March corn futures are 6¼¢ higher at $5.77. May futures are 6½¢ higher at $5.79. July corn futures are 5¾¢ higher at $5.79. 
 
January soybean futures are 4¼¢ higher at $12.32. 

March soybean futures are 4½¢ higher at $12.39. May soybean futures are 4¾¢ higher at $12.47.

March wheat futures are 12¼¢ higher at $8.02.
 
Jan. soymeal futures are $2.20 per short ton higher at $351.30.



Jan. soy oil futures are 0.01¢ lower at 55.17¢ per pound.

In the outside markets, the crude oil market is $1.56 per barrel lower at $64.01, the U.S. dollar is lower, and the Dow Jones Industrials are 192 points higher (+0.57%) at 34,214.

On Thursday, OPEC announced it will increase oil production, extending the oil market’s 29% drop in the last month.

On Thursday, private exporters reported sales of:

  • 164,100 metric tons of soybeans for delivery to unknown destinations during the 2021/2022 marketing year.
  • 130,000 metric tons of soybeans for delivery to China during the 2021/2022 marketing year.


Separately, the delayed USDA’s Weekly Export Sales Report Friday shows strong demand figures for corn and soybeans.

  • Corn = 1.02 million metric tons (mmt.) vs. the trade’s expectations of 600,000 to 1.50 mmt. 
  • Soybeans = 1.10 mmt. vs. the trade’s expectation of 800,000 mt to 1.8 mmt.
  • Wheat = 106,900 mt. vs. the trade’s expectation of 800,000 to 1.8 mmt.
  • Soybean meal = 146,700 mt. vs. the trade’s expectation of 100,000 to 350,000 mt.

Bob Linneman, Kluis Advisors, says that the corn and soybean markets were quietly higher on Tuesday while wheat prices were mixed.

“The increased volatility in the outside markets over the last week still appears to be having some impact on the grains. We could also be seeing traders starting to adjust their positions to prepare for year-end. If money managers have had a good year, then they may consider trimming their portfolio to lock in gains. If the outside markets continue seeing volatile moves, then we should not be surprised to see the grains impacted,” Kluis stated in a note to customers.

Kluis added, “Ethanol futures have slipped alongside RBOB gasoline and crude oil over the last few weeks. Although the profit margins are still favorable for the ethanol industry, a continued slide in the energy sector is not what the corn bulls want to see.”

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