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310928

Profit-taking sinks the corn, soybean markets Thursday

Wheat prices need to battle for acreage, analyst says.

On Thursday, the CME Group’s farm markets suffer from month-end profit-taking.

At the close, the March corn futures finised 4½¢ lower at $5.54½. May corn futures finished 7½¢ lower at $5.49¾. New-crop December corn futures closed 2½¢ lower at $4.74. 
 
March soybean futures closed 17¾¢ lower at $14.06¾. May soybean futures closed 18¼¢ lower at $14.07½. New-crop November soybean futures finished 7¼¢ lower at $12.30¾.

May wheat futures closed 9¾¢ lower at $6.75¾. 

May soymeal futures finished $4.30 short term lower at $423.00.

May soy oil futures closed 0.36¢ lower at 49.67¢ per pound.

READ MORE: 3 Big Things Today, February 25, 2021

In the outside markets, the NYMEX crude oil market is $0.34 per barrel higher (+0.54%) at $63.56. The U.S. dollar is lower, and the Dow Jones Industrials are 331 points lower (-1.04%) at 31,630 points.

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

  • Corn = 599,200 million metric tons (mmt.) vs. the trade expectations of 500,000 to 1.3 mmt. 
  • Soybeans = 238,700 mmt. vs. the trade’s expectation of 200,000 to 800,000 mmt.
  • Wheat = 184,500 mt. vs. the trade expectations of 250,000 to 700,000 mt. 
  • Soybean meal = 160,200 mt. vs. the trade expectations of 70,500 to 450,000.
  • Bob Linneman, Kluis Advisors, says that the market’s bulls are getting good long-term signals.  

“The wheat contracts may need to see higher prices to avoid an acre shift toward corn or soybeans this spring. Even though the winter wheat is planted, there is still time to convert those acres toward other more profitable grains,” Linneman stated in a daily note to customers. 

Kluis added, “Soybean basis levels continue to tighten or remain very tight. This is unusual for late February. It bodes well for the bull camp. Their theory is that physical soybeans in the U.S. are going to be very hard to source this summer.”

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