Wheat Closes 7¢ Higher Monday

Wheat leads the way.

DES MOINES, Iowa -- On Monday, the CME Group’s wheat market finished as the strongest, while others closed mixed.

At the close, the December corn futures settled ¼¢ lower at $3.54¾, and March futures finished ½¢ lower at $3.62¾ per bushel.

November soybean futures closed 1¢ higher at $10.02¼, while January soybean futures finished ¼¢ lower at $10.11¾.

December wheat futures finished 7¾¢ higher at $4.16¼.

December soy meal futures closed $1.40 short ton lower at $316.10. December soy oil futures closed 0.24¢ lower at 35.17¢ per pound. 

In the outside markets, the Brent crude oil market is $1.84 per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 19 points lower.

Peter Meyer, PIRA Energy grain analyst, says that another week of very impressive soybean export inspections seems to have some convinced that a normal export setback is not coming this year. 

“Given the size of the U.S. soybean crop, I believe that prices are vulnerable. Cash basis doing a lot of work with futures this high and storage space running short,” Meyer says.

The markets are battling between trading fresh demand reports (much like the Monday release of corn and soybean sales) and chart-resistance levels, analysts say. The corn market is caught between a $3.50-per-bushel and the $3.60-per-bushel range. The market is sold at $3.60 but remains above $3.50.

The trade is awaiting new supply-side information in the form of new USDA yield estimates. On November 9, the USDA will release its monthly Supply/Demand and Crop Production estimates.

Private exporters reported to the U.S. Department of Agriculture the following activity:

  • Export sales of 100,973 metric tons of corn for delivery to Barbados during the 2016/2017 marketing year. 
  • Export sales of 264,000 metric tons of soybeans for delivery to China during the 2016/2017 marketing year. 
  • Export sales of 111,000 metric tons of grain sorghum for delivery to unknown destinations during the 2016/2017 marketing year.

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

Jack Scoville, The PRICE Futures Group’s senior market analyst, says that it is a demand rally.  
“I had expected beans and corn would drift lower this week, with the last part of the harvest. But the demand news remains strong.  

“China is in for more beans and some sorghum sales and corn sales, too. Plus, the export inspections were very good for both corn and beans, with beans above trade expectations,” Scoville says.  

“Overall, the beans show upside potential while corn is a bit more of a struggle, but showing some upside potential as well. No deliveries in beans today; there had been expectations for minimal deliveries. My Western guys are seeing a lot of dew and some frost and are out of the fields today.  The last of the harvest looks a little slow, and that will keep selling pressure down along with the good demand,” Scoville says.

 

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