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Corn Ends Stronger Thursday

Soybean sales help curb losses

DES MOINES, Iowa -- On Thursday, the CME Group’s corn closed higher, while soybeans finished mixed.

At the close, the September corn futures finished 9½¢ higher at $3.11, while December futures finished 8¼¢ higher at $3.23¾ per bushel.

September soybean futures finished 1¢ lower at $9.59, while November soybean futures closed ¾¢ lower at $9.43¾.

September wheat futures ended 7¼¢ higher at $3.68¼.

September soy meal futures closed $0.90 short ton higher at $313.10. September soy oil futures closed 0.27¢ lower at 32.20¢ per pound. 

In the outside markets, the Brent crude oil market is $1.50 per barrel lower, the U.S. dollar is lower, and the Dow Jones Industrials are 13 points lower.

The month of September has started much like August, regarding daily export sales announcements.

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

  • Export sales of 129,540 metric tons of corn for delivery to Mexico. Of the total, 99,060 metric tons are for delivery during the 2016/2017 marketing year, and 30,480 metric tons are for delivery during the 2017/2018 marketing year.
  • Export sales of 147,000 metric tons of soybeans for delivery to unknown destinations during the 2016/2017 marketing year.

The marketing year for corn and soybeans began September 1.

Jack Scoville, The PRICE Futures Group’s senior market analyst, says that the markets have been pressured by today’s weaker Weekly Export Sales Report.

“The big sales were in beans, which is the dog,” Scoville says. “I think a lot of this has to do with the calendar.  Lots of people getting out of losing bean positions and hammering the corn and wheat to dress up profits, and those pressures are gone now.”

The trade has real questions about corn production.  

“The crop is getting smaller. Not sure about beans. I think it is a very high estimate, but maybe so.

He adds, “What I have seen generally looks good, but starting to hear of sudden death syndrome cases.  Corn diseases showing up now, too, and the crop is not there.”

There is a good to very good crop, but not near what USDA wants to think, Scoville says.  

“We are competitive in the U.S. market, and that is reason for the markets here to find support. Some spec buying and some commercial buying,” Scoville says.

 

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