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311617

Grain markets close higher | Tuesday, March 16, 2021

China buys 45.0 million bushels of U.S. corn in a one-time purchase.

On Tuesday, the CME Group’s farm markets end higher.

After starting lower, the soybean complex turned higher.

At the close, the May corn futures settled 4¾¢ higher at $5.54¼. July corn futures closed 4¢ higher at $5.41¾. New-crop December corn futures settled 1¢ lower at $4.77¾. 
 
May soybean futures closed 3¾¢ higher at $14.23½. July soybean futures settled 3½¢ higher at $14.13¾. New-crop November soybean futures ended 1¢ higher at $12.45.

May wheat futures closed 2¢ higher at $6.47. 

May soymeal futures closed $1.30 short term lower at $406.10.

May soy oil futures finished unchanged at 55.09¢ per pound.

In the outside markets, the NYMEX crude oil market is -0.56 lower (-0.86%) at $64.83. The U.S. dollar is higher, and the Dow Jones Industrials are 144 points lower (-0.44%) at 32,808 points.

On Tuesday, private exporters reported to the USDA export sales of 1,156,000 metric tons of corn for delivery to China during the 2020/2021 marketing year.

The marketing year for corn began Sept. 1.

Jack Scoville, PRICE Futures Group, says that price spreads between old-crop and new-crop contracts continue to be the story, for these markets.

“We got a bump from the big sale, but most of the action has been in the spreads for both beans and corn the last couple of days. Old crop firm on tight beans supplies and strong demand for both beans and corn and new crop a little weaker now that the bidding war between the two is about over, at least for insurance purposes and government purposes.  Not sure which side of the spread wins in the end, but kind of thinking the old crop,” Scoville says. Al Kluis, Kluis Advisors, says that market lows may be showing themselves.  

“The way the bull spreads worked yesterday (the July-to-December corn spread, and the July-to-November soybean spread), prices are putting in a low before the late-month USDA reports,” Kluis stated in a daily note to customers.

Kluis added, “Watch the May soybean meal futures contract. The reversal higher yesterday was a positive chart signal for both soybean meal and the soybean market. A higher close today (above the Monday high) will signal a low in both meal and the soybean market.”

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