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Corn, Soybeans End Higher Friday

Wheat is lower.

DES MOINES, Iowa -- On Friday, the CME Group’s corn and soybean markets closed higher, as strong demand underpinned the trade.

Also, investors try to position themselves ahead of Monday’s USDA Supply/Demand Report.

At the close, the Dec. corn futures settled 2 1/2¢ higher at $3.41, while March futures ended 3¢ higher at $3.51 1/2 per bushel.

Nov. soybean futures finished 3 1/2¢ higher at $9.80 1/4, while Jan. soybean futures closed 3 3/4¢ higher at $9.84.

Dec. wheat futures closed 2 1/2¢ lower at $4.03 1/2.

Dec. soymeal futures finished $1.10 short ton lower at $316.50. Dec. soyoil futures closed $0.10 higher at 33.37¢ per pound. 

In the outside markets, the Brent crude oil market is $1.76 per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 322 points lower.

Mike North, President Commodity Risk Management Group, says that short-covering in corn and buying in soybeans has been the feature throughout the week.  

“This has lifted prices ahead of the Monday USDA report. Question over yield continues to be the catalyst to rallying markets,” North says.  

Whether or not the August corn yields can hold remains to be seen, North says.  

“With private analysts aligning both with the August numbers and others with Pro Farmer findings, the market is torn.”  

Looking ahead to Monday’s USDA Reports, in the balance, remains 400 million bushels of production that can sway trader mindsets over the bulkiness of the 2016/17 balance sheet.  

“In question also is the projected feed usage.  With greater usage of wheat, elevated corn feed consumption may be used to mitigate some of the potential reduction in yield.  Markets trade either side of unchanged today as we await the numbers,” North says.

Jason Ward, Director of Grains and Energy for Northstar Commodity, says today’s markets are trading demand and early corn yield reports.

“We continue to hear less than expected corn yields, we would say 70% of our reports are less than expected and 30% are better than expected. We got some yields out of Illinois yesterday that are better than expected (South of Quincy, IL), but South Dakota was much worse than expected,” Ward says.

Ward adds that the USDA’s Weekly Export Sales Report is showing more sales than daily reports indicate.

“I’m a little disappointed in the daily reported corn sales, they are non existent. But, then we get the weekly sales total and it’s very good. So, they are just buying differently than China does on soybeans, where they buy totals above 100,000 MT. In corn, it must be a lot of small purchases.

For soybeans, it is all about demand. “Another 65 mil/bu in today’s weekly sales total just keeps people interested on the buy side,” Ward says.

On Friday, the USDA released its delayed weekly Export Sales Report. The sales were strong for all products.

  • Wheat= 662,100 mt vs. the trade’s expectations of 200,000-700,000 mt
  • Corn= 1.123 million mt. vs. the trade’s expectations of 500,000-1.10 mmt.
  • Soybeans= 1.778 mmt. vs. the trade’s expectations of 1.10-1.60 mmt.
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