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Corn, Soybean Markets Close Higher Friday

The investors are still digesting yesterday’s bearish USDA data.

DES MOINES, Iowa -- On Friday, the CME Group’s farm markets close stronger in a rebound from yesterday’s lower trade.

At the close, the December corn futures settled 2¢ higher at $3.43. March futures ended 2¢ higher at $3.56.

January soybean futures finished 2¢ higher at $9.87. March soybean futures closed 2¢ higher at $9.98.

December wheat futures closed 2½¢ higher at $4.31½.

December soy meal futures closed $2.70 per short ton higher at $314.50. December soy oil futures settled 0.33¢ lower at 34.81¢ per pound. 

In the outside markets, the Brent crude oil market is $0.43 lower, the U.S. dollar is lower, and the Dow Jones Industrials are 34 points lower.

Deanna Hawthorne-Lahre, StatFutures cofounder and trader, says that today’s higher grain market is a simple bounce after yesterday’s pounding.

“There is a lot of chatter about corn open interest going up 25,000 contracts. The spreads and basis are waking up, as the board is doing the work,” she says.

Also, there is a lot of chatter about the Iraq hard red winter wheat price surge last week off its tender.

“I’m already preparing for the January seedings report and the holidays. I see trading ranges still holding, as predicted months ago. Corn market doesn’t look too hot at this stage,” Hawthorne-Lahre says.

Jason Roose, U.S. Commodities grain analyst, says that the market is up on a lack of farmer-selling.

“Grains are trading higher today, post the USDA bearish supply crop report, on a firm tone tied to slow producer-selling, a weak dollar, and an optimistic export outlook,” Roose says.

 

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Thursday’s Grain Market Review

On Thursday, the CME Group’s farm futures prices trade higher, with the USDA November Supply/Demand Report set to be released at 11:00 CT.

At 9:46 a.m., the December corn futures are ¾¢ higher at $3.49. March futures are ½¢ higher at $3.61.

January soybean futures are 1¾¢ higher at $10.00. March soybean futures are 1½¢ higher at $10.11.

December wheat futures are 5¢ higher at $4.31.

December soy meal futures are $2.20 per short ton higher at $317.40. December soy oil futures are 0.10¢ lower at 35.27¢ per pound. 

In the outside markets, the Brent crude oil market is $0.42 higher, the U.S. dollar is lower, and the Dow Jones Industrials are 99 points lower.

On Thursday, the totals from this morning’s USDA Weekly Export Sales Report are market-friendly for corn and wheat.

  • Corn = 2.934 million metric tons, above trade expectations and highest one week of sales 
  • Soybeans = 1.16 million mt., below trade expectations
  • Wheat = 781,700 mt., a weekly marketing year high

 

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Wednesday’s Grain Market Review

On Wednesday, the CME Group’s farm markets finished slightly higher, ahead of tomorrow’s USDA November Supply/Demand Report.

At the close, the December corn futures finished ½¢ higher at $3.48. March futures finished ¼¢ higher at $3.61.

January soybean futures closed 2½¢ higher at $9.98½. March soybean futures ended 3¢ higher at $10.09½.

December wheat futures closed ½¢ lower at $4.26.

December soy meal futures finished $0.30 per short ton lower at $315.20. December soy oil futures closed 0.35¢ higher at 35.37¢ per pound. 

In the outside markets, the Brent crude oil market is $0.36 lower, the U.S. dollar is lower, and the Dow Jones Industrials are 5 points higher.

Jack Scoville, The PRICE Futures Group’s senior market analyst, says that today’s trading has been quiet.

“The funds, in general, are selling corn and wheat and buying some more in the beans,” Scoville says. 

He adds, “A lot of people are just sitting on their hands waiting for the USDA’s November reports tomorrow, but funds in general have been buying beans and selling corn in anticipation of the potential yield changes in the report.” 

“I am kind of willing to fade the beans rally, and I would buy corn if it goes lower, but right here I am not doing much,” Scoville says. 

The wheat market is suffering due to the Egypt purchase from Russia that showed slightly weaker prices, he says.

 

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Tuesday’s Grain Market Review

Grains finished lower while soybeans ended higher on Tuesday as investors square positions ahead of Thursday’s Supply and Demand Report from the USDA. 

Chicago wheat was hovering at about the 10-day moving average of $4.26½ a bushel throughout the trading day -- a key support level, according to Chicago brokerage Zaner Group. Prices moved just below that level but never broke much lower throughout the session.

Corn futures ended less than a penny lower as investors weigh the slow pace of harvest against reports that yields have been strong in areas where collection is complete.

Fundamentally, little has changed in the past few weeks as prices have stayed within a narrow range. Prices on Tuesday also were underpinned by a report issued Monday that unknown buyers purchased supplies from the U.S.

Chicago wheat futures for December delivery lost 3¾¢ to $4.27 a bushel on the Board of Trade. Kansas City futures declined 3½¢ to $4.26½ a bushel.

Corn futures closed down ½¢ to $3.47½ a bushel in Chicago. 

Soybean futures ended up 2¼¢ to $9.96¼ a bushel. Soy meal fell 20¢ to $315.90 a short ton, and soy oil added 0.23¢ to 34.96¢ a pound on the CBOT. 

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Monday’s Grain Market Review

Soybean and wheat futures closed higher as speculators and other hedgers likely are squaring positions ahead of Thursday’s World Agricultural Supply and Demand Estimates (WASDE) Report, while corn was unable to maintain gains. 

Corn growers in the U.S., as of last week, were still well behind the average pace of harvest at 54% complete. Soybeans were 83% collected, just behind the prior five-year average of 84% for this time of year. The USDA will release its weekly Crop Progress Report later this afternoon.

The weather is expected to be drier in much of the Midwest this week, which likely will help growers get their crops out of the ground. Some wet weather, however, is expected to further delay the harvest in the eastern fourth of the Corn Belt, according to Commodity Weather Group. 

Rainfall in Brazil the next 10 days will boost crops in the South American country, while southern Argentina is expected to be wet through Wednesday before giving way to drier weather later in the week, the forecaster said.

Wheat futures closed higher due to some demand news last week. Iraq reportedly bought 300,000 metric tons of hard red winter wheat, which has shaken the bears’ confidence, said Dan Hueber of The Hueber Report in Sycamore, Illinois.

The Commitment of Traders Report from the Commodity Futures Trading Commission showed bears increased their net-short positions in both soft red and hard red winter wheat along with corn.  

“Combined short positions in wheat and corn have reached the second highest level for the year, trailing only the high water mark set in April,” Hueber said. “To me, this would sound like a boat that is listing so heavily to one side that we are an imminent risk for dumping a bunch of these overconfident passengers overboard so the ship can right itself once again.”

Wheat added 5¢ to $4.30¾ a bushel on the Chicago Board of Trade while Kansas City futures gained 3¢ to $4.29¾ a bushel. 

Soybeans for January delivery added 7¼¢ to $9.94 a bushel. Soy meal futures gained $2.70 to $316.60 a short ton, and soy oil rose 0.29¢ to 34.71¢ a pound. 

Corn futures for December delivery fell ¼¢ to $3.48 a bushel in Chicago. 

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