Farm Markets End Higher Thursday

Weekly Demand Helped Markets Nudge Up

DES MOINES, Iowa -- On Thursday, the farm markets made a run at a small rally, recovering from lower prices earlier in the session.

At the close, the December corn futures finished 3 1/2¢ higher at $3.42, while March futures ended 3 1/4¢ higher at $3.49 3/4 per bushel.

January soybean futures finished 3 3/4¢ higher at $9.89 1/2, while March soybean futures closed 4¢ higher at $9.98.

December wheat futures closed 6¢ higher at $4.03.

December soy meal futures clolsed $3.10 short ton higher at $311.50. December soy oil futures ended $0.40 lower at 33.70¢ per pound. 

In the outside markets, the Brent crude oil market is $0.30 per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 6 points higher.

Mike North, President Commodity Risk Management Group, says that market pressure is coming from a strengthening US Dollar. 

“That feature suppressed early trade.  While it did take a while, stronger than expected export support finally showed up late in the day.  Net corn sales of 1,661,000 MT for 2016/2017 were up 35% from last week and 47 percent from the prior 4-week average.  Net soybean sales of 1,418,700 MT for 2016/2017 were up 51 percent from the previous week, but fell 23 percent from the prior 4-week average,” North says.  

North adds, “A general lack of moisture has defined weather across the central U.S. over the past week, allowing dryness to build further across the western Plains, Delta, and the far southern Midwest.  Building dryness in these areas is stressing the establishment of both the hard and soft red winter wheat crops and ultimately lends support to prices.”

The USDA Weekly Export Sales Report Thursday showed corn sales beating the street’s expectations. Here are the numbers:

  • Wheat: 598,400 metric tons vs. the trade’s expectations of between 350,000 and 650,000 mt.
  • Corn: 1.66 million metric tons vs. the trade’s expectations of between 900,000 and 1,400,000 mt.
  • Soybeans: 1.41 million mt. vs. the trade’s expectations of between 1,000,000 and 2,000,000 mt.

Separetely, the USDA, announced yet another fresh sale Thursday. Private exporters reported to the U.S. Department of Agriculture export sales of 106,200 metric tons of corn for delivery to unknown destinations during the 2016/2017 marketing year.

The marketing year for corn began September 1.

 

Market Recap for Wednesday

On Wednesday, the CME Group’s farm futures turned weaker and finished that way.

At the close, the December corn futures finished 3¢ lower at $3.38½, while March futures closed 2¾¢ lower at $3.46½ per bushel.

January soybean futures ended 3¾¢ lower at $9.85¾, while March soybean futures closed 3½¢ lower at $9.94½.

December wheat futures closed 2¢ lower at $3.97.

December soy meal futures closed $1.70 short ton lower at $308.40. December soy oil futures settled 0.11¢ lower at 34.10¢ per pound. 

In the outside markets, the Brent crude oil market is 18¢ per barrel lower, the U.S. dollar is lower, and the Dow Jones Industrials are 54 points lower.

On Wednesday, the USDA announced fresh soybean exports. Private exporters reported to the U.S. Department of Agriculture export sales of 165,000 metric tons of soybeans for delivery to China during the 2016/2017 marketing year.

The marketing year for soybeans began September 1.

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Tuesday’s Market Recap

Tuesday, the CME Group’s corn and soybean markets helped wheat close higher.

At the close, the December corn futures finished 4¼¢ higher at $3.41½; March futures closed 4¢ higher at $3.49¼ per bushel.

January soybean futures ended 5¼¢ higher at $9.89½, and March soybean futures finished 5½¢ higher at $9.98.

December wheat futures closed 5¢ higher at $3.99.

December soy meal futures closed 20¢ short ton higher at $310.10, and December soy oil futures closed 0.26¢ higher at 34.21¢ per pound. 

In the outside markets, the Brent crude oil market is $2.29 per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 2 points higher.

Jason Roose, U.S. Commodities grain analyst, says the weaker palm oil markets in overnight, plus a stronger dollar seem to be the focus in the market today.

“The positive exports on soybeans will limit the downside until we see yield estimates from Brazil and Argentina. Slow producer selling and bargain hunting from end users will limit downside on corn.”

On Tuesday, the USDA showed more evidence of China’s insatiable appetite for U.S. soybeans. Private exporters reported to the U.S. Department of Agriculture the following activity:

  • Export sales of 121,500 metric tons of soybeans for delivery to China during the 2016/2017 marketing year.
  • Export sales of 126,000 metric tons of soybeans for delivery to unknown destinations during the 2016/2017 marketing year.

The marketing year for soybeans began September 1.

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MONDAY’S RECAP OF THE GRAIN MARKETS

On Monday, the CME Group’s corn, soybean markets finish weaker.

At the close, the December corn futures closed 3¢ lower at $3.37¼; March futures finished 3¾¢ lower at $3.45¼ per bushel.

January soybean futures finished 1¾¢ lower at $9.84¼, and March soybean futures finished 2¢ lower at $9.92½.

December wheat futures closed 9¢ lower at $3.94.

December soy meal futures closed $2.10 short ton higher at $309.90. December soy oil futures closed 0.49¢ lower at 33.95¢ per pound.  

In the outside markets, the Brent crude oil market is 22¢ per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 2 points lower.

Jack Scoville, The PRICE Futures Group’s senior market analyst, says the move lower is mostly a dollar-related sell-off today.  

“USD is up big and over par, and most commodities are taking it on the chin. I think we will stay under pressure. The rest of the news is actually kind of friendly with good exports and some new sales today. Weather is reported to be good in Brazil this week, so planting and initial growth should move right along. The real is weaker and there might be some selling, but so far I have not seen any. Should be an interesting week, with people wondering what to do in the wake of the Trump victory,” Scoville says.

On Monday, the USDA announced fresh soybean sales. Private exporters reported to the U.S. Department of Agriculture the following activity:

  • Export sales of 175,000 metric tons of grain sorghum for delivery to China during the 2016/2017 marketing year. 
  • Export sales of 324,000 metric tons of soybeans for delivery to China during the 2016/2017 marketing year.
  • Export sales of 132,000 metric tons of soybeans for delivery to unknown destinations during the 2016/2017 marketing year.

The marketing year for grain sorghum and soybeans began September 1.

 

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