Soybean Prices Close Slightly Higher Friday

Bearish news is flowing through the trade.

DES MOINES, Iowa -- On Friday, the CME Group’s soybean market tried to move higher, only to turn lower, while corn and wheat remain lower on USDA projections and international estimates.

At the close, the May corn futures settled 1¾¢ lower at $3.70¾; December futures ended ¾¢ lower at $3.91.

May soybean futures settled 1¾¢ higher at $10.24¼. November soybean futures ended 2½¢ higher at $10.07.

May wheat futures closed 5½¢ lower at $4.48.

May soy meal futures closed $0.50 per short ton higher at $335.70. May soy oil futures closed 0.08¢ higher at 32.67¢ per pound. 

In the outside markets, the Brent crude oil market is $0.43 per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 52 points lower.

Deanna Hawthorne-Lahre, StatFutures co-owner and trader, says that global crop estimates are moving markets.

“In wheat, Argentina upped its 2017 crop estimate to 18.5 million metric tons from 15 mmt. That really caught the pit traders with their pants down,” Hawthorne-Lahre says. Soybean traders are smelling something about Brazil, or more U.S. acreage, or both. The traders do not like the makeup of the bean longs very much, either.”

The corn market remains bouyant, in spite of all the whining about Mexico getting corn from SA.

“Personally, I feel Mexico has played their best card already, and that isn’t much. But, we will see if they are better at game theory than I am. We will see option expiration fireworks, if beans start sniffing the $10.00 level, but that doesn’t look so probable,” she says.

 

 

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Thursday’s Grain Market Review

On Thursday, the CME Group’s soybean market kept the pressure on the entire complex. The market is digesting bigger U.S. 2017 soybean acreage estimates, released at Thursday’s Ag Outlook Forum.

At the close, the May corn futures finished 5¾¢ lower at $3.72½, while December futures closed 5½¢ lower at $3.91¾.

May soybean futures closed 11¢ lower at $10.22½. November soybean futures closed 9¢ lower at $10.04.

May wheat futures closed 2½¢ lower at $4.53.

May soy meal futures ended $4.30 per short ton lower at $335.20. May soy oil futures closed 0.41¢ lower at 32.59¢ per pound. 

In the outside markets, the Brent crude oil market is 83¢ per barrel higher, the U.S. dollar is lower, and the Dow Jones Industrials are 50 points higher.

Jason Roose, U.S. Commodities grain analyst, says that multiple factors are pressuring the grain markets today.

“With larger acres projected to be planted based on USDA government projections, improving South America corn and bean yields, and with a South Korea corn cancellation from their export lineup, U.S. prices may be overvalued with Brazil and Argentina competing for market share,” Roose says.

 

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Wednesday’s Grain Review

On Wednesday, the CME Group’s farm markets closed on a sleepy pattern, much like they opened.

At the close, the March corn futures ended 1¾¢ higher at $3.78¼, and December futures finished 1½¢ higher at $3.97.

May soybean futures settled 3¾¢ lower at $10.33½. November soybean futures ended 3¾¢ lower at $10.13½.

May wheat futures closed 6¼¢ higher at $4.56.

May soy meal futures closed $2.40 per short ton lower at $339.50. May soy oil futures closed 0.05¢ higher at 33.00¢ per pound. 

In the outside markets, the Brent crude oil market is 72¢ per barrel lower, the U.S. dollar is lower, and the Dow Jones Industrials are 12 points higher.

Jack Scoville, The PRICE Futures Group’s senior market analyst, says that the market has turned a little lower due to little news.

“My farm customers are generally out digging in the dirt if they are south of I-80. Maybe not so much north, but still out and about and getting things moving,” Scoville says. “This is late February, and there is preliminary fieldwork getting done in a lot of places.”

Scoville adds, “Most attention is on the USDA Ag Outlook conference and what they will show for planting and stuff like that, over the next couple of days. Most investors do not seem too eager to do much before the USDA’s supply/demand tables come out, although that is a mystery to me since they are just model-based numbers.”

The USDA released an 8 a.m. export sale report on Wednesday. Private exporters reported to the U.S. Department of Agriculture cancellations of optional origin sales of 136,000 metric tons of corn for delivery to South Korea during the 2016/2017 marketing year.

The marketing year for corn began September 1.

 

 

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Tuesday’s Grain Market Review

On Tuesday, the CME Group’s farm futures did not gain much momentum from being closed to start the week.

At the close, the March corn futures finished 1¢ higher at $3.69¼, and December futures finished 1½¢ higher at $3.95¾.

March soybean futures finished 6¼¢ lower at $10.26¼. November soybean futures closed 3¾¢ lower at $10.14½.

May wheat futures ended 5¾¢ lower at $4.49¾.

March soy meal futures finished $2.20 per short ton lower at $337.40. May soy oil futures closed 0.21¢ lower at 32.95¢ per pound. 

In the outside markets, the Brent crude oil market is 61¢ per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 108 points higher.

Dustin Johnson, EHedger’s senior strategist, says the funds came to the rescue of corn. “The funds were adding corn long last week, it looks like this is a continuation of that. We are seeing it in the spreads, as well. Dec-Dec climbed 2¢ today. Other than that, I don’t see a fundamental shift as to why.”

On Tuesday, the private exporters reported to the U.S. Department of Agriculture the following activity:

  • Export sales of 111,200 metric tons of corn for delivery to unknown destinations during the 2016/2017 marketing year. 

  • Export sales of 138,650 metric tons of wheat for delivery to unknown destinations. Of the total 44,100 metric tons of hard red winter, 22,450 metric tons of hard red spring wheat, 23,700 metric tons of white wheat, and 2,400 metric tons of durum wheat are for delivery during the 2016/2017 marketing year. Then 22,200 metric tons of hard red winter wheat, 11,200 metric tons of hard red spring wheat, and 12,600 metric tons of white wheat are for delivery during the 2017/2018 marketing year.

    The marketing year for corn began September 1 and wheat began June 1.

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