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Soybeans Close 15¢ Lower Friday

Wheat moves higher.

DES MOINES, Iowa -- On Friday, the CME Group’s soybean market drops double-digits, while corn and wheat trade mixed.

At the close, the May corn futures finished ½¢ lower at $3.56¼, while December futures finished ½¢ lower at $3.79½.

May soybean futures closed 15¼¢ lower at $9.75¾. November soybean futures finished 14¼¢ lower at $9.77.

May wheat futures closed 3¾¢ higher at $4.24.

May soy meal futures settled $2.50 per short ton lower at $318.20. May soy oil futures closed $0.99 lower at 32.23¢ per pound. 

In the outside markets, the Brent crude oil market is $0.31 per barrel higher, the U.S. dollar is lower, and the Dow Jones Industrials are 24 points lower.

Mike North, Commodity Risk Management Group analyst, says the soybean market is getting hit from all sides. “Soybean prices have dropped below their January lows, as pressure from this week’s palm oil weakness spread throughout the soybean complex,” North says.

He adds, “The funds are selling off positions in corn and soybeans – and that isn’t helping. Plus, next week’s USDA Planting Intentions Report has traders fearing that acreage estimates for both corn and soybeans could come in at 90.0 million acres for each commodity.”

DeAnna Hawthorne-Lahre, StatFutures co-owner, says that the soybean market has been fading for weeks.

“The July soybean futures contract has gone from being 60¢ higher than the November contract to single digits. Reports of Brazil’s crop getting bigger is a major reason why the market is weaker,” Hawthorne-Lahre says.

 

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Thursday's  Grain Market Review

On Thursday, the CME Group’s farm markets dropped throughout the session and into the close.

At the close, the May corn futures finished 2¢ lower at $3.56¾; December futures finished 2¢ lower at $3.80.

May soybean futures closed 8¾¢ lower at $9.91. November soybean futures closed 7½¢ lower at $9.91¾.

May wheat futures closed 1¼¢ lower at $4.21.

May soy meal futures closed $2.80 per short ton lower at $320.70. May soy oil futures finished $0.30 lower at 33.22¢ per pound. 

In the outside markets, the Brent crude oil market is $0.35 per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 59 points higher.

“It’s driven by the stronger dollar prospect. Global stocks on grains continue to build, moisture in the Plains is adding resistance to the wheat, and with the USDA crop report fast approaching, positioning will give the grains added volatility,” Roose says.

 

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Wednesday's Grain Market Review

On Wednesday, the CME Group’s soybean market trimmed losses, settling mixed.

At the close, the May corn futures finished 2½¢ lower at $3.58¾; December futures finished 2½¢ lower at $3.82.

May soybean futures ended 1¾¢ lower at $9.99¾. November soybean futures settled ½¢ higher at $9.98¾.

May wheat futures closed 4¼¢ lower at $4.22¼.

May soy meal futures settled $2.30 per short ton lower at $323.50. May soy oil futures closed 0.38¢ higher at 33.52¢ per pound. 

In the outside markets, the Brent crude oil market is $0.23 per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 30 points lower.

Jack Scoville, The PRICE Futures Group’s senior market analyst, says that it has generally been a quiet trade. 

“Soybeans and soybean meal markets remain pressured from big competition from South America. Even if some of the highest production estimates for Brazil seem to be overdone, there is no doubt the crop is big, though, and the Brazilian farmers are selling soybeans these days, too,” Scoville says. 

Wheat is a weather market, and the forecast for the dry areas of the Great Plains calls for rain, he says. 

“Corn market is just along for the ride, but holding support, and support should hold now on good demand ideas,” Scoville says.

On Wednesday, private exporters reported to the U.S. Department of Agriculture the following activity:

  • Export sales of 120,000 metric tons of hard red winter wheat for delivery to Saudi Arabia during the 2016/2017 marketing year.
  • Export sales of 120,000 metric tons of soybeans for delivery to China during the 2017/2018 marketing year.

The marketing year for wheat began June 1; soybeans began September 1.

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Tuesday’s Grain Review

Corn and wheat futures closed lower on Tuesday, while soybean futures reversed course and finished higher.

Prices had been lower across the board after 2 to 4 inches of rain fell in central and northwest Mato Grosso, a major growing state in Brazil, over the weekend, according to Commodity Weather Group. Futures also declined after Agroconsult, a Brazilian agriculture consultancy, raised its soybean harvest outlook to 111 million metric tons, up from 108 million. The U.S. Department of Agriculture said earlier this month that Brazil would produce 108 million tons of soybeans, up from a prior projection of 104 million tons. 

Soybeans, however, rebounded after the price of palm oil, a competing cooking oil, had its biggest intraday gain in a week on the Malaysian Exchange. The decline to about $9.95 a bushel for soybeans in overnight trading also may have brought in some buyers looking for a bargain. 

Wheat futures declined on speculation that it may rain in the Southern Plains this week. If that happens, it will be the first round of precipitation in more than a month, according to the National Weather Service. Still, the area only has a small chance of seeing rainfall, which would start Thursday, the NWS said. 

Corn futures for May delivery fell 2¼¢ to $3.61¼ a bushel on the Chicago Board of Trade. Wheat futures lost 4¼¢ to $4.26 a bushel, and Kansas City wheat declined 7¼¢ to $4.38 a bushel. 

Soybeans rose 1¼¢ to $10.00¾ a bushel in Chicago. Soy meal futures fell 80¢ to $325.80 a short ton, and soy oil added 0.35¢ to 33.09¢ a pound. 

 

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