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Corn, Soybean Prices Close Lower Thursday

Soybeans need a fresh bullish fundamental.

DES MOINES, Iowa -- On Thursday, the CME Group’s corn and soybean markets end lower.

At the close, the December corn futures finished 5¢ lower at $3.31¾, and March futures closed 6¢ lower at $3.42½ per bushel.

January soybean futures finished 2½¢ lower at $10.29¾; March soybean futures ended 2¼¢ lower at $10.39.

March wheat futures closed 7¼¢ lower at $3.95½.

January soy meal futures settled $5.60 a short ton lower at $312.70. January soy oil futures closed 0.86¢ higher at 37.85¢ per pound. 

In the outside markets, the Brent crude oil market is $1.68 per barrel higher, the U.S. dollar is lower, and the Dow Jones Industrials are 66 points higher.

Jack Scoville, the PRICE Futures Group’s senior market analyst, says that it has been a sell-the-grains-and-soybeans kind of day. 

“The export sales report was good but not great, and I think people are worried about soybean demand moving south (Brazil), probably with good reason since it’s crop-weather situation has been improved,” Scoville says. 

The U.S. dollar is a little weaker but still very strong overall, he says. 

“I think this is mostly just spec selling with a lot of talk that the highs are in for the beans. I am generally a sell rallies kind of guy in the beans and have been for a while. The corn and wheat I kind of want to buy, as I think the ethanol news is positive for corn demand, and I think our export demand for corn will hold better now than beans. Plus, we are cheap enough for wheat prices to find a low soon,” Scoville says.

On Thursday, the USDA Weekly Export Sales Report showed corn sales at the bottom of expectations, while soybeans crept toward the upper end.

  • Wheat = 490,500 metric tons vs. the trade’s expectations of 350,000 to 800,000 metric tons.
  • Corn = 761,600 mt. vs. the trade’s expectations of 650,000 to 1,800,000 metric tons.
  • Soybeans = 1.465 million mt. vs. the trade’s expectations of 800,000 to 1,900,000 mmt.
  • Soybean meal = 150,400 mt. vs. the trade’s expectations of 125,000 to 300,000 metric tons.  
  • Soy oil = 54,500 mt., a marketing year high.

 

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Wednesday Reveiw of the Markets

 

On Wednesday, the CME Group’s soybean market finished lower, corn mostly lower.

At the close, the December corn futures settled unchanged at $3.36¾; March futures ended ½¢ lower at $3.48½ per bushel.

January soybean futures closed 10¼¢ lower at $10.32¼, and March soybean futures ended 9¾¢ lower at $10.41¼.

March wheat futures closed 6¢ lower at $4.02¾.

January soy meal futures finished $5.90 a short ton lower at $318.30. January soy oil futures ended 0.37¢ higher at 36.99¢ per pound. 

In the outside markets, the Brent crude oil market is $4.07 per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 31 points higher.

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Mike North, president of Commodity Risk Management Group, says that the soybean market is suffering from a few different things.  

“Ongoing strong conditions in South America, together with further discussion about added soybean acres, coupled with a breakdown in chart support have allowed further selling in today’s market,” North says.  

OPEC’s news of a coming production freeze/cut has been supportive of the soybean oil, North says.  

“However, the added crushing creates surplus in the soybean meal balance sheet that takes away from soybean values. In the end, the offsetting product values give rise to competition from South America amid forthcoming harvest and strong U.S. dollar conditions.”

On Wednesday, private exporters reported to the U.S. Department of Agriculture export sales of 123,000 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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