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Corn closed 20¢ higher, soybeans up 27¢ | Thursday, May 6, 2021

Weekly export sales were weak.

On Thursday, the CME Group's corn and soybean markets closed on a strong rally.

At the close, the July corn futures settled 10 1/2¢ higher at $7.18 3/4. New crop September futures closed 14 1/2¢ higher at $6.45 1/2. December corn futures closed 20 3/4¢ higher at $6.25 1/4. 
July soybean futures finished 27 1/2¢ higher at $15.69 3/4. August soybean futures finished 24 3/4¢ higher at $15.15 1/2. New crop November soybean futures finished 26 1/4¢ higher at $14.09 1/4.

July wheat futures closed 8 3/4¢ higher at $7.53 3/4. 

July soymeal futures closed $2.90 per short ton higher at $427.30.

July soy oil futures ended +0.89 higher at 64.35¢ per pound.

In the outside markets, the NYMEX crude oil market is -0.89 lower (-1.36%) at $64.74. The U.S. dollar is lower, and the Dow Jones Industrials are 137 points higher (+0.40%) at 34,367 points.

Jack Scoville, PRICE Futures Group, says that the soybeans traded higher on strongish export sales.

"They (export sales) were not real strong, but we had expected next to nothing, so decent sales really help the July.  We have so little for sale!  Corn prices got hurt by weaker-than-expected export sales.  New crop contracts, in both corn and soybean markets, were helped by fears about the growing conditions amid the need for super strong yields," Scoville says.

Bob Linneman, Kluis Advisors, says that many grain contracts shot to new contract highs yesterday and again overnight, or are getting very close to doing so. 

“Persistent dry conditions in a large area of Brazil are expected to continue for at least another ten days, according to recent forecasts. Cool temps in the U.S. are drawing more concern than the faster-than-average planting pace this spring. More media outlets than usual are discussing grain prices and how much higher they could go. But, remember other years when this happened? Prices were this high, and the media started hyping the upside. That extra attention was a warning sign that a top was close. Protect prices when you can, not when you have to. There are plenty of strategies to consider at these price levels," Linneman stated in a note to customers.  

Linneman added, "Traders are adding quite a bit of risk premium to the new crop contracts for corn and soybeans. Brazilian weather remains dry and US weather is not off to a perfect start. Demand remains strong as end users continue to be willing to pay for the higher-priced corn."

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