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Profit-taking hits the ag markets | Thursday, October 21, 2021

Mexico buys a fresh batch of U.S. corn.

On Thursday, the CME Group’s farm markets experience profit-taking, after the corn market has bounced off its recent low by 33¢ and soybeans 50¢.

At the close, the Dec. corn futures finished 7¢ lower at $5.32. March futures ended 6¾¢ lower at $5.41. May corn futures settled 6¼¢ lower at $5.45. 
November soybean futures closed 21¼¢ lower at $12.24. 

Jan. soybean futures closed 21½¢ lower at $12.33. March soybean futures ended 20¢ lower at $12.43.

Dec. wheat futures ended 8¢ lower at $7.41.
Dec. soymeal futures closed $4.40 per short ton lower at $324.00.

Dec. soy oil futures finished 2.12¢ lower at 62.58¢ per pound.

In the outside markets, the NYMEX crude oil market is $1.13 lower at $82.29. The U.S. dollar is higher, and the Dow Jones Industrials are 91 points lower (-0.37%) at 35,517 points.

On Thursday, private exporters reported sales of 130,000 metric tons of corn for delivery to Mexico during the 2021/2022 marketing year. 

Bob Linneman, Kluis Advisors, says that the corn and soybean market will need to prove rally stability to the bulls.

“Corn and soybean futures have bounced nicely off of recent lows. We are now approaching (or have hit) technical resistance targets on the charts,” Linneman stated in a note to customers. “Is there enough bullish news to keep the rally going? Or is this harvest rally ready to fizzle out?”

Linneman added, “Grain prices moved higher across the board on Wednesday. Soybeans came within a nickel of hitting the 50% retracement mark of the September 30 report day high and the recent October 13 low. December corn managed to post an outside day with a close above the prior-day high. December spring wheat futures hit another contract high overnight. The $10 mark is only a few pennies away for the spring wheat bulls. Traders are still evaluating the severity of the spring wheat supply and demand picture, since Canada and the United States had dismal crops this year.”

Separately, the USDA’s Weekly Export Sales Report Thursday shows strong demand figures for corn and soybeans.

Corn = 1.27 million metric tons (mmt.) vs. the trade expectations of 700,000 to 1.40 mmt. 

Soybeans = 2.87 mmt. vs. the trade’s expectation of 1.5mmt to 2.5 mmt.

Wheat = 362,400 mt.

Soybean meal = 246,500 mt.

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