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Corn, soybean prices close higher | Friday, October 29, 2021

Today marks the final trading day of the month.

On Friday, a boatload of fresh soybean sales has the CME Group’s farm markets settled higher.

At the close, the Dec. corn futures closed 5¾¢ higher at $5.68. March futures ended 5¢ higher at $5.76. May corn futures finished 4¾¢ higher at $5.79. 
November soybean futures settled 2¢ higher at $12.35. 

Jan. soybean futures closed 3½¢ higher at $12.49. March soybean futures ended 3¢ higher at $12.59.

Dec. wheat futures closed ¼¢ higher at $7.72.
Dec. soymeal futures closed 1.70 per short ton higher at $332.60.

Dec. soy oil futures finished 0.40¢ higher at 61.27¢ per pound.

In the outside markets, the crude oil market is $0.55 per barrel higher at $83.36, the U.S. dollar is higher, and the Dow Jones Industrials are 15 points higher (+0.04%) at 35,746.

On Friday, private exporters reported sales equating to 13.0 million bushels of soybeans and over 10.0 million bushels of corn. Here are the totals:

  • 279,415 metric tons of corn for delivery to Mexico during the 2021/2022 marketing year
  • 132,000 metric tons of soybeans for delivery to unknown destinations during the 2021/2022 marketing year
  • 222,350 metric tons of soybeans received during the reporting period for delivery to unknown destinations during the 2021/2022 marketing year

Britt O’Connell, ever. ag, says that grain markets, to close the week, are trading in a quite fairly narrow range.  

“Corn is holding into positive gains whereas soybeans and wheat have yet managed to take a definitive position on the day’s trade. Earlier this week, corn was able to break through the $5.50 area, which had served as resistance on the heels of a bullish ethanol production report. The latest estimate for weekly corn consumption was 112.3 million bushels. Corn needs to average 99.5 million bu. per week to fulfill the current USDA estimates, prompting some analysts to believe that ethanol demand could work its way higher on the balance sheet. Posting profitable margins for seven weeks in a row and its highest weekly profit margin in over six years validates those theories,” O’Connell says. 

She added, “Wheat continues to carry a bullish sentiment, once again posting a new contract high yesterday. Soybeans have largely taken a back seat lately with lackluster exports and a growing balance sheet. The storyline around 2022 input costs and availability will undergird the corn market until proven otherwise, which likely doesn’t come until our March 2022 planting intentions report.”

Bob Linneman, Kluis Advisors, says that grain prices have had an impressive week.

“Many of the charts are showing breakouts to the upside. New contract highs were scored in many of the Spring Wheat contracts as well as in December 2022 and December 2023 corn. What news will we need to see next week to keep feeding the bullish move? Traders are surely watching the RBOB gasoline chart, since the bulls are trying to prevent a close below the 20-day average on the daily chart. However, the weekly chart could be setting the table for next week. A close below $2.36 would mean a key reversal lower. Keep a close eye on this chart. It could create a negative situation for ethanol, which would put pressure on corn,” Linneman stated in a note to customers.

“Many areas have seen basis weaken slightly from their best levels, but that does not mean we will see things fall apart,” Linneman added. “Considering the pop in futures this week, are we to imply that demand is picking up? Do we need to see prices rise further to find that magical spot where supply and demand are balanced?”

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