New-crop soybean price hits $12 per bushel Monday

Investors eye this week’s export sales.

On Monday, the CME Group’s farm markets start the week with strength.

At the close, the March corn futures finished 8¼¢ higher at $5.51. May corn futures finished 8¾¢ higher at $5.50¾. New-crop December corn futures ended 9¾¢ higher at $4.69¼. 
 
March soybean futures settled 6½¢ higher at $13.83¾. May soybean futures ended 7½¢ higher at $13.87½. New crop November soybean futures closed 15½¢ higher at $12.11¾.

May wheat futures settled 14¾¢ higher at $6.69¾. 

May soymeal futures closed $0.70 short term lower at $422.90.

May soy oil futures finished 0.33¢ higher at 47.22¢ per pound.

In the outside markets, the NYMEX crude oil market is $2.45 per barrel higher (+4.14%) at $61.69. The U.S. dollar is lower, and the Dow Jones Industrials are 140 points higher (+0.45%) at 31,634 points.

Jack Scoville, PRICE Futures Group, says that markets are off, due to fund-selling.

“Brazil farmers are just 15% harvested on soybeans, but I think nearby beans are weaker on the threat of exports ramping up soon. Plus, first notice day for delivery of expiring futures contracts is on Friday, so specs are moving out of the March.  Corn spreads are weaker too, but nothing like the beans as there is less of a spec long there. Wheat up on the Great Plains weather again. It’s been quiet for me, but not for others, judging from the volumes. Maybe a sideways week going into first notice day,” Scoville says.

Al Kluis, Kluis Advisors, says that investors are still digesting the USDA outlook estimates.  

“On Friday, after the release of the USDA Ag Outlook projections, the grain markets moved higher when the USDA confirmed that stocks will stay tight even with more acres of both corn and soybeans,” Kluis stated in a daily note to customers.

Kluis added, “I am watching the weekly export sales. Even with China out of the market last week, we again posted another week of better-than-expected export sales. To hit the USDA target for corn exports, we only have to average 27.5 million bushels per week. For soybeans, we only need to average 2.5 million bushels per week. I expect the USDA to move exports higher and ending stocks lower in the supply/demand report in March.”

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