Soybeans close at 7-year high, corn at $6 | Tuesday, April 20, 2021

The farm markets are staging a big rally.

On Tuesday, the CME Group’s farm markets have full support from investors.

At the close, the May corn futures finished 14¼¢ higher at $6.06¾.

July corn futures closed 11¢ higher at $5.92. New-crop December corn futures ended 8¼¢ higher at $5.28½.
May soybean futures settled 22¢ higher at $14.72. July soybean futures closed 21¼¢ higher at $14.57¾. New-crop November soybean futures ended 15½¢ higher at $12.99.

July wheat futures closed 7½¢ higher at $6.61. 

July soymeal futures finished $3.40 short term higher at $414.70.

July soy oil futures closed 1.27¢ higher at 55.14¢ per pound.

In the outside markets, the NYMEX crude oil market is -0.88 lower (-1.39%) at $62.50. The U.S. dollar is higher, and the Dow Jones Industrials are 364 points lower (-1.07%) at 33,713 points.

Private exporters reported to the USDA export sales of 114,300 metric tons of corn for delivery to Mexico during the 2020/2021 marketing year. 

The marketing year for corn began Sept. 1.

Al Kluis, Kluis Advisors, says that today’s markets are different than a year ago.

“Wow, what a change. This is the week that the commodity markets bottomed in April 2020. In fact, one year ago today (April 20, 2020) crude oil dropped to -$40 per barrel. Not this year. On Monday, the grain markets rallied sharply on dry weather concerns in Brazil and the announcement from China that their hog herd is now 30% larger than last year at this time,” Kluis stated in a note to customers.

Kluis added, “The USDA Crop Progress report showed corn planting at 8% complete, right at the five-year average of 8%. However, I expect the planting pace to fall behind normal next week. Spring wheat planting is at 19% (well ahead of the five-year average of 12%). Some farmers are waiting for rain to plant, and some are checking if they can file a prevent-plant claim because it is too dry to plant.”

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