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Ag markets finish off their daily highs | Wednesday, December 1, 2021

Columbia buys a fresh batch of U.S. corn.

While still finishing in the green, the CME Group’s farm markets closed off their daily highs.

At the close, the March corn futures finished 4¢ higher at $5.71½. May futures finished 3¢ higher at $5.73. July corn futures settled 2¾¢ higher at $5.73. 
 
January soybean futures closed 11¢ higher at $12.28. 

March soybean futures ended 8½¢ higher at $12.35. May soybean futures settled 7¾¢ higher at $12.43.

March wheat futures ended 3½¢ higher at $7.90.
 
Jan. soymeal futures closed $7.30 per short ton higher at $349.10.


Jan. soy oil futures settled 0.03¢ lower at 55.18¢ per pound.

In the outside markets, the crude oil market is $0.40 per barrel lower at $65.78, the U.S. dollar is higher, and the Dow Jones Industrials are 70 points higher (+0.21%) at 34,555.

Midsession farm market prices

As the trading session hit its midday, the CME Group’s farm markets gain strength.

At midsession, the March corn futures are 8¢ higher at $5.75. May futures are 7¾¢ higher at $5.77. July corn futures are 7¢ higher at $5.77¾. 
 
January soybean futures are 16¾¢ higher at $12.34. 

March soybean futures are 14¾¢ higher at $12.41½. May soybean futures are 14¢ higher at $12.49.

March wheat futures are 5½¢ higher at $7.92.
 
Jan. soymeal futures are $10.20 per short ton higher at $352.00.


Jan. soy oil futures are 0.11¢ higher at 55.32¢ per pound.

In the outside markets, the crude oil market is $1.12 per barrel higher at $67.30 the U.S. Dollar is higher, and the Dow Jones Industrials are 373 points higher (+1.08%) at 34,857.

On Wednesday, the Energy Information Administration (EIA) reported that the U.S. weekly ethanol production dropped to a seven week low.

According to EIA data analyzed by the Renewable Fuels Association for the week ending November 26, ethanol production slowed by 43,000 barrels per day (b/d), or 4.1%, to a seven-week low of 1.035 million b/d, equivalent to 43.47 million gallons daily.

Production was 6.3% above the same week last year, which was affected by the pandemic, but 2.4% less than the same week in 2019. The four-week average ethanol production volume declined by 1.7% to 1.053 million b/d, equivalent to an annualized rate of 16.14 billion gallons (bg).

Ethanol stocks rose 0.7% to a 12-week high of 20.3 million barrels. However, stocks were 4.4% below the year-ago level and 1.6% lower than the same week in 2019. Inventories increased in the Midwest (PADD 2) and Gulf Coast (PADD 3) but thinned across the other regions.

In early commodity trading

On Wednesday, the CME Group's farm markets start the month of December slightly higher.

In early trading, the March corn futures are 1 3/4¢ higher at $5.69. May futures are 1 1/4¢ higher at $5.71. July corn futures are 1 1/4¢ higher at $5.72. 
 
January soybean futures are 2 1/4¢ higher at $12.19 1/2. 

March soybean futures are 1 3/4¢ higher at $12.27 1/2. May soybean futures are 1/2¢ higher at $12.35.

March wheat futures are 3 1/2¢ higher at $7.90.
 
Jan. soymeal futures are 0.70 per short ton higher at $342.50.


Jan. soy oil futures are 0.40 of a cent higher at 55.61 per pound.

In the outside markets, the crude oil market is $2.09 per barrel higher at $68.27 the U.S. Dollar is lower, and the Dow Jones Industrials are 213 points higher (+0.62%) at 34,696.

On Wednesday, private exporters reported sales of 150,000 metric tons of corn for delivery to Colombia during the 2021/2022 marketing year. 

Al Kluis, Kluis Advisors, says that the corn market could face headwinds.

"With crude oil and gasoline prices getting hit hard, corn prices will stay under pressure. All of the grain contracts that funds bought over the last two weeks are now losing positions. How long will they hold on," Kluis stated in a note to customers.

Kluis added, "I am watching what Stats Canada will report on Friday when they update their 2021 crop estimates. The trade is again expecting smaller estimates of their wheat and canola crops. I will watch what the numbers are--and the trade reaction into the close. Right now, it is difficult for a bullish report to create a rally that will hold."

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