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Corn market closed below $7, soybeans trim off 19¢ | Tuesday, April 27, 2021

USDA announces a fresh sale of corn Tuesday.

On Tuesday, the CME Group’s farm markets weakended toward the close of the trade session.

At the close, the May corn futures contract closed 15¢ higher at $6.95, after hitting $7.20 per bushel overnight.

July corn futures finished 3¢ lower at $6.54¼. New-crop December corn futures closed 6¢ lower at $5.62¾. 
 
May soybean futures settled 19¼¢ lower at $15.49¼. July soybean futures finished 19¾¢ lower at $15.19½. New-crop November soybean futures closed 19½¢ lower at $13.42¼.

July wheat futures ended 6¾¢ lower at $7.32¼. 

July soymeal futures settled $4.70 short ton lower at $426.80.

July soy oil futures closed 0.01¢ lower at 60.88¢ per pound.

In the outside markets, the NYMEX crude oil market is +0.69 higher (+1.11%) at $62.60. The U.S. dollar is lower, and the Dow Jones Industrials are 3 points higher (+0.01%) at 33,984 points.

On Tuesday, private exporters reported to the USDA export sales of 101,600 metric tons of corn delivery to unknown destinations. Of the total, 50,800 metric tons is for delivery during the 2020/2021 marketing year and 50,800 metric tons is for delivery during the 2021/2022 marketing year.

The marketing year for corn began Sept. 1.

Al Kluis, Kluis Advisors, says that with the huge rally in the grain markets (and now with the CBOT and Minneapolis Grain Exchange raising margin requirements), the markets are entering a possible “blow-off” top in the grain markets.

“The signal will be the day that prices open higher and close sharply lower. It’s not a question of if; it is a question of when,” Kluis stated in a note to customers. “I am watching the Stats Canada report today. The trade expects a 1.8-million-acre increase in canola and 1.2 million acres less wheat. For the first time, every Canadian farmer may plant more canola than wheat.” 

Kluis added, “Reviewing Monday, the rally in the grain market continues with corn gapping higher on Sunday night and then closing limit up. This pulled the soybean and wheat markets higher. The USDA Crop Progress report Monday showed corn planting at 17% complete, just below trade estimates and the five-year average. At the close on Monday, corn closed up the 25¢ limit, soybeans closed 29¢ higher, and wheat closed 21¢ to 29¢ higher.”

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