Midweek farm markets trade mixed | Wednesday, April 7, 2021

Upcoming rains seen as helpful for dry Midwestern states.

On Wednesday, the CME Group’s farm markets have little support.

At the close, the May corn futures finished 6¼¢ higher at $5.60½. July corn futures closed 5¢ higher at $5.46. New-crop December corn futures closed 2¼¢ higher at $4.85½.
May soybean futures settled 10¢ lower at $14.08. July soybean futures closed 8¼¢ lower at $14.03. New-crop November soybean futures settled ½¢ lower at $12.70.

May wheat futures finished 3¼¢ higher at $6.16. 

July soymeal futures settled $2.90 short term higher at $411.40.

July soy oil futures closed -1.00¢ lower at 51.00¢ per pound.

In the outside markets, the NYMEX crude oil market is +0.26 higher (+0.44%) at $58.29. The U.S. dollar is higher, and the Dow Jones Industrials are 22 points lower (-0.07%) at 33,407 points.

Bob Linneman, Kluis Advisors, says that the market participants are squarely focused on which crops get planted this spring.

“It will be worth watching the spread between the KC, CBOT, and Spring wheat contracts over the next few months. If Spring wheat acres are swapped for corn or soybean acres this spring, then there is a good chance the funds will take a long position in the Spring wheat and a short position in either CBOT or KC wheat as a spread trade. Additional influences on this trade will come from growing conditions for spring wheat area in Canada,” Linneman stated in a daily note to customers.

Kluis added, “The rain events slated for this week across the Upper Plains would be a welcome sight for many areas. Recent drought maps indicate that conditions are getting drier as we are getting closer to planters rolling. If amounts are less than forecasted, then will that set the tone for other rain events this spring?”

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