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Despite strong exports, soybean prices close lower| Friday, January 21, 2022

China buys U.S. soybeans Friday.

On Friday, the CME Group’s farm markets saw mostly a sell-off.

At the close, the March corn futures finished 5¼¢ higher at $6.16. May futures ended 3¼¢ higher at $6.14. December futures settled 3¢ higher at $5.65. 
 
March soybean futures closed 11¼¢ lower at $14.14. 

May soybean futures settled 11¾¢ lower at $14.23. New-crop November soybean futures ended 4¢ lower at $13.16, after hitting an 11-year high at $13.25 this week.

March wheat futures settled 10¢ lower at $7.80.
 
March soymeal futures closed $8.10 per short ton lower at $392.70.


March soy oil futures ended 0.12¢ higher at 63.00¢ per pound.

In the outside markets, the crude oil market is $0.48 per barrel lower at $85.07. The U.S. dollar is lower, and the Dow Jones Industrials are 258 points lower (-0.74%) at 34,456.

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Soybean prices slide

On Friday, the CME Group’s farm markets follow the soybean complex lower.

At midsession, the March corn futures are 1¾¢ higher at $6.12. May futures are ¼¢ lower at $6.10. December futures are ¾¢ lower at $5.61. 
 
March soybean futures are 14¼¢ lower at $14.11. 

May soybean futures are 14 3/4¢ lower at $14.19. New crop November soybean futures are 9 1/2¢ lower at $13.10.

March wheat futures are 5 3/4¢ lower at $7.84.
 
March soymeal futures are 8.70 per short ton lower at $392.10.


March soy oil futures are 0.01 higher at 62.89 per pound.

In the outside markets, the crude oil market is $0.73 per barrel lower at $84.82 the U.S. Dollar is lower, and the Dow Jones Industrials are 120 points lower (-0.35%) at 34,595.

Jason Roose, U.S. Commodities, says that it's been a strong week, despite today's weaker corn and soybean prices.  

“Grains are ending the week in risk off trade, but not without setting multi-month highs in most grains. Strong export inspections, continued spot purchasing from China, lower production estimates in South America and inflation premium has continued to give solid support in the grains. Brazil harvest reports and the energies will give the grains solid direction for next week," Roose says.

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Ag markets fall

On Friday, the CME Group’s farm markets ease from their strong performance yesterday.

In early trading, the March corn futures are ¾¢ higher at $6.11. May futures are unchanged at $6.10. December futures are 1½¢ lower at $5.60. 
 
March soybean futures are 7¼¢ lower at $14.18. 

May soybean futures are 7½¢ lower at $14.27. New-crop November soybean futures are 5¼¢ lower at $13.15.

March wheat futures are 7¢ lower at $7.83.
 
March soymeal futures are $4.60 per short ton lower at $396.20.


March soy oil futures are 0.34¢ higher at 63.22¢ per pound.

In the outside markets, the crude oil market is $0.61 per barrel lower at $86.29. The U.S. dollar is lower, and the Dow Jones Industrials are 23 points higher (+0.07%) at 35,738.

On Friday, private exporters reported the following activity: 

  • 132,000 metric tons of soybeans for delivery to China during the 2021/2022 marketing year.
  • 247,800 metric tons of corn received in the reporting period for delivery to unknown destinations during the 2021/2022 marketing year.

Separately, the USDA’s Weekly Export Sales Report Friday shows strong demand figures for corn and soybeans.

Corn = 1.19 million metric tons (mmt.) vs. the trade expectations of 500,000 to 1.00 mmt. 

Soybeans = 1.20 mmt. vs. the trade’s expectation of 600,000 mt to 1.2 mmt.

Wheat = 452,600 mt.

Soybean meal = 516,600 mt.

Bob Linneman, Kluis Advisors, says that investors want to see the daily purchases of U.S. soybeans from China.

“The catalyst for yesterday’s soybean rally was rumors of China buying U.S. bushels in large quantities. However, until we see confirmation of those sales hit the daily reports, we are likely to see prices stabilize or drift lower in the short term,” Linneman stated in a note to customers. 

Linneman added, “Basis levels continue to widen ever so slightly across many areas of the Midwest. There are a lot of bushels in piles or in bins, since production was ample last year in the U.S. Until we get further into South American harvest, this trend is likely to continue.”

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